100023799No.PostPrintPostAustraliabyRegistered The Monthly Magazine for Accommodation Industry Professionals www.accomnews.com.au management rights • hotels • motels • resorts • holiday parks • time share • hosted Issue 313 | September 2022 | $13.75 inc. GST www.hotelinteriors.com.au info@hotelinteriors.com.au | 1300 876 055 Custom made furniture including packages SPECIALISTS IN ACCOMMODATION FURNITURE FF&E AND JOINERY CEO, Dennis Clark Special Report Management rights shapes up for long-term ght Profiles Vista on Brays & Hidden ApartmentsCashelmaraGroveBeachfront
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FRONT DESK Editor’s Note: A month of challenges, threats & dirty laundry 05 INDUSTRY Special Report: Management rights shapes up for long-term fight 06 ARAMA Report 10 State Report 12 BCCM Report .............................................................................. 16 SCA Report 19 MANAGEMENT Legal Ease 20 By All Accounts 20 Q&A with Josh Mangleson, Property Economist, ResortBrokers 22 Motel Market 24 Thinking MR 25 Software Solutions 26 Building Relationships 27 Good Governance 28 TOURISM Tourism Report ........................................................................... 32 EVENTS & APPOINTMENTS Events: ARAMA TOP Awards 2022 34 Events: The Best of Tourism Awards 2022 36 DEVELOPMENTS Development News 38 PROPERTY New Manager Spotlight 40 Accomproperties.com.au Sales Report 40 PROFILE Hidden Grove and Vista on Brays: Ian and Maree Smith are managing splendidly 46 Cashelmara Beachfront Apartments: Instagram makes every post a winner at Cashelmara 50 PREFERRED SUPPLIERS Preferred Supplied Directory 54 EDITOR Mandy Clarke editor@accomnews.com.au INDUSTRY REPORTERS Grantlee Kieza DESIGN & PRODUCTION Richard McGill ADVERTISING Stewart Shimmin advertising@accomnews.com.au SUBSCRIPTIONS Gavin Bill subscriptions@accomnews.com.au CONTRIBUTORS Andrew Morgan, Col Myers, Commissioner BCCM, John Mahoney, Jonathan Hanaghan, Kelley Rigby, Kristi Kinast, Lynda Kypriadakis, Mike Phipps, Sylvia Johnston and Trevor Rawnsley. 36 34 22 50 Inside our September issue
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04 ResortNews | September 2022FRONT DESK
The views and images expressed in Resort News do not necessarily reflect the views of the publisher. The information contained in Resort News is intended to act as a guide only, the publisher, authors and editors expressly disclaim all liability for the results of action taken or not taken on the basis of information contained herein. We recommend professional advice is sought before making important business decisions.
AccomNews that rising costs had contributed to pushing the price of everything up, including hotel rates.
Also, this month we welcome newcomers Wendy and Anthony Richardson from Cashelmara, and talk to ARAMA TOP Award winners, Ian and Maree Smith from the Hidden Grove and Vista on Brays complexes. Enjoy this issue of Resort News! Cheers, Mandy. Clarke,
On page six you can read our special report about the threat, alongside reactions and advice from some of the industry’s most knowledgeable experts.
“We are a demand/supply business in recovery mode and investors in the sector have been hard hit,” he said.
Welcome
editor@accomnews.com.auEditor A month of challenges, threats & dirty laundry www.hotelinteriors.com.au OUR SERVICES Dennis Clark MDIA info@Hotelinteriors.com.au 1300 876 055 0420 257 022 NUMBER IN HOTEL FIT OUTS Furniture FF&E design 3DconceptsRendering & Furniture CustomOverlaysfurniture and joinery InternationallyServicingCommercialFullmanagementFreightInhouseProjectTurnkeymanufacturepackagesManagementqualitycontrolandlogisticsinstallationwarrantiesAustraliaandSPECIALISING IN FURNITURE FOR HOTELS, MOTELS, SERVICED APARTMENTS, RESORTS AND REFURBISHMENTS.
Meanwhile, let’s touch on dirty laundry! In just the last few weeks several small regional motel operators and Queensland MLR owners (who all wish to remain anonymous) contacted me to talk about problems with their laundry service. Rising laundry costs, unreliable service, disrupted deliveries and in some instances, services ceased without notice. So, if your laundry service is causing you a massive headache, please get in touch, this will be an ongoing story in AccomNews.
Mandy
NOTEEDITOR'S
to the September edition of Resort News.
Meanwhile, accommodationBrisbane’sroom rates have soared past 46 percent for the period January to July 2022. The ‘Australian Hotels Investment Market Report’, released by professional services and
05ResortNews | September 2022 FRONT DESK
The biggest talking point right now is that our industry is facing its greatest challenge in years. With Queensland’s Unit Owners Association calling on the term for management rights agreements to be reduced from 25 to three years. The government has asked ARAMA why they should NOT do this, but I feel confident ARAMA will lobby and (as always) do its best to avoid changes that will be detrimental to the sector. ARAMA always ‘has the back’ of its members and fights hard against any threat to MLR legislation. But now is not the time for any of us in the industry to sit back and observe, it is time to join forces and prepare to go into battle because if the government legislates shorter terms for agreements, it will have an adverse impact on MLR values.
(AA)Accommodationfuelcleaningpricesbusinessesrates,contributedRisingbyGoldrevealedusingmanagementinvestmentcompanyColliersSTRGlobaldata,alsothatCairnsandtheCoast’sratesincreased39.3and32.3,respectively.costshavemostcertainlytoincreasedroomwithallaccommodationfacedwithsoaringfromtheirsupplychains,andlaundryservices,costsandofcoursewages.AustraliaCEO,RichardMunrotold
“This is a very serious issue and ARAMA is a vital advocacy group. It’s probably the only thing standing between the industry and those who would seek to benefit from its demise. If you’ve got money invested in management rights, ARAMA are the ones standing up to defend long-term agreements.”
Management rights shapes up for long-term fight
“If ever there was a time to become an ARAMA member it’s now,” Mr Cook said.
Queensland’s Unit Owners Association is calling on the term for management rights agreements to be reduced from 25 to three years.
REPORTSPECIAL
And Alex Cook from ResortBrokers urged everyone involved in the business of management rights to get with the strength and become ARAMA members.
Politicians are listening to the squeaky wheel and I’m not sure that many politicians really understand management rights
“There are a couple of bodies whose solution to the problem is to basically destroy the industry,” Mr Cook said. “That would be ludicrous. Because you’re basically punishing the vast majority of managers who do a great job and all the lot owners who benefit from their exceptional service.”
The challengefacingrightsmanagementindustryisitsgreatestinyears with thousands of ‘mum and dad’ businesses in underQueenslandthreat.
of managers are letting down the 95 percent who do a great job.
“If you buy management rights for $1.8 million, based on a multiple of six, and you have put in $600,000, that means you have borrowed $1.2 million,” Mr Mahoney explained.
Leading management rights lawyer John Mahoney predicts that if the government legislates shorter terms for agreements, it will have an “immediate adverse impact” on their value.
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By Grantlee Kieza, Industry Reporter
06 ResortNews | September 2022INDUSTRY
“If that multiple reduces to five, the value of the management rights now becomes $1.5 million. You still owe the bank $1.2 million but your $600,000 is now worth only $300,000. If the multiple reduces to four, your $300,000 is now worth zero. You’ve lost all your equity. And you still owe the bank $1.2 million.”
Mr Cook said the issue had reached a head because “unfortunately a small percentage
ARAMA CEO Trevor Rawnsley is leading the industry’s defence against an attack on long-term agreements that threaten the core of the industry.
Mr Mahoney said any decrease in the earnings multiples that are the basis of management rights values would dramatically reduce personal equity in each business. He said a reduction from a multiple of six to five because of changes in legislation would mean most management rights businesses in Queensland would lose 50 percent of their equity in the business.
In employment relationships you do performance counselling, and, through a process, you have the ability to shift people on if they are not performing. “The same sort of thing should happen in management rights because the vast bulk of managers are good at what they do but it’s just the odd bad one that is causing the problems.
07ResortNews | September 2022 INDUSTRY Call us (07) 3878 8513 email info@pret.edu.au visit www.pret.edu.au RTO: 31303 Professional Real Estate Training Since 2006 Nationally Recognised Qualifications Benefits: • Friendly, Experienced Trainers • Practical Courses for MR Industry • Qualifications issued promptly • Competitively Priced • Free CPD Workshops for Graduates • Exclusive Online Support Group Flexible Training Options: • Traineeships • Small face to face classes • Live Zoom classes • Delivered in English and Mandarin • Flexi Learning at own pace • Recognition of Prior Learning Salesperson | Property Manager | Real Estate Agent | Resident Letting Agent Industry Recognised Workplace Performance Skills Supplementary Qualifications Ongoing Support Traineeships in both: Cert lll in Business & Cert IV in Real Estate Practice Brisbane L 18, 167 Eagle Street Brisbane Qld 4000 07 3007 3777 Gold Coast L 2, 235 Varsity Parade Varsity Lakes Qld 4230 07 5562 2959 www.mahoneys.com.au The Management Rights Lawyers ARAMA2021 TOPAWARDS PrServiceovider WINNER ARAMA SERVICE PROVIDER OF THE YEAR 2019, 2020 & 2021 Buying and selling Legal due DisputeOptionsAgreementsdiligenceandvariationsandtop-upsresolution
Mr Rawnsley said with some detractors of management rights demanding the government cut the length of agreements to just three years, major changes in legislation could mean the end of “mum and dad” businesses in management rights. “It could mean the end of businesses for several thousand Queensland families,” Mr Rawnsley said. “The Government is asking ARAMA to please explain why new laws that are coming should not limit the terms of agreement to three or five years instead of 25. “But we are putting together a strong set of factual statements that prove undeniably that long-term agreements are in the best interests of a scheme. “Our detractors will say reducing the term of agreement will be better for the scheme and we say prove it. They can’t because all of the evidence points otherwise.”
He said managers could also encourage their unit owners to make submissions to their local member.
“ARAMA is going above and beyond to present a united front.
“The review is a four-stage process. We’re up to Stage 3 now, and that includes management rights.
Mr Rawnsley said ARAMA had surveyed 250 time and motion studies by an independent assessor and discovered that on 87 percent of occasions the resident manager was underpaid. On about 10 percent of occasions the payment was right - that the manager was being paid commensurate with their duties. He said ARAMA was preparing a “significant submission to refute the calls for shorterterm Frankagreements.”Higginson,from Hynes Legal, said calls to cut the length of agreements was a knee-jerk reaction that would punish the whole industry because of a few difficult relationships with managers. “There are alternative ways to deal with the issues that are driving this, opposed to just bastardising terms and cutting people back,” Mr Higginson said. “You’ve got a whole industry that’s built around legislative certainty and tenure. “There are better ways to deal with the few managers who might not be performing, rather than damage the whole industry.
“Stage 1 of this process started 18 months ago so there’s going to be a lot of discussion over the next 12 months.”
“So, it’s time for the industry to address these voices. “The strength of any industry is how it deals with things like this. The vast majority of people in management rights do a very good job but inevitably you would work a bit harder if you knew that you were going to be accountable for poor performance.”
“But it’s only very few managers who are not living up to their agreement. There is a noisy minority who are opposed to management rights seizing upon that, and their voices are being heard.
Mr Mahoney said ARAMA was doing as much as they could with their lobbying efforts to avoid changes in the terms of agreement.
Mr Mahoney urged everyone involved in management rights to protest “loud and hard” and to contact their local members.
“Length of term has nothing to do with it. You can have a three-year agreement with a bad manager – and for a few even six months could be too long.
“We had the first meeting on June 23, and we’ve been asked to put in submissions.
“It’s reviewing strata in all areas, from issues surrounding pets, smoking, debt recovery,” he said.
Mr Cook said threats to the 25-year terms were coming about during a wide-ranging, long-term review of strata living by the state government.
“That skin in the game should drive exceptional standards but unfortunately some managers have gone to sleep at the wheel,” Mr Phipps said.
“There might need to be some concessions in some areas in order to protect the tenure we have in management rights, and we may have to take a pragmatic approach. But the industry is in the safest possible hands with ARAMA.”
“We want these issues dealt with by legislative tweaks rather than destroying the industry,” he said.
“There is a lot of talk about shorter terms in other states, but there are 3600 management rights in Australia and 3300 of them are in Queensland. We have legislation here that has been developed over 50 years so you can’t compare it with other “Managementstates.rights has been a very successful business for everyone involved in it in Queensland, and it’s an industry that the state should be really proud of.”
Lynda Kypriadakis managing director of Diverse FMX asks, although it’s daunting for traditional caretaking service providers is there another way of looking at this?
Leading financier Mike Phipps, who assists syndicates to run large management rights businesses, said the government was reacting “to a very small but very vocal group” calling for shorter terms.
She said: “For those lot owners who are no longer satisfied with long-term caretaking agreements the trend is heading toward shorter-term agreements for specialty scopes of works.
Mr Phipps said if a manager had skin in the game (if they’ve invested in the business) they would almost always do a better job than an outside caretaker.
“Without a resident manager, committees and owners will be paying three times as much for the same services.”
“The traditional caretaking agreement is an allencompassing ‘do all’ arrangement where the caretaker typically delivers the cleaning, gardening, pool care and minor handyperson works, while supervising and arranging the specialist contractors to do the specialist repairs, maintenance and construction works on common property.
She says at the end of the day “it’s all about getting the right building management fit” and suggests that the industry needs to “consider why there is an appetite developing in some quarters of residential strata properties for alternatives to long-term caretaking agreements and management rights”.
Mr Cook predicted a long fight over the issue.
“The call for reduced terms is coming from people who don’t want management rights in their building, and in my experience in buildings where they’ve managed to get rid of onsite managers and bring in external caretaking services (because they think it will save them money) it’s almost never worked.
“We had a Deloitte report that clearly showed that long-term management was in the best interest of a scheme because owners and committees get more stuff done for the same amount of money,” Mr Rawnsley said. “Now we’ve got a real threat where government is considering reducing the term of those agreements and somehow expecting prices for services to drop. They won’t.
Mr Rawnsley said time and motion studies were essential for managers to show their value against market rates.
He said it had been proven time and time again that having an onsite manager gives a building or complex better service for a cheaper rate than any team of outside providers.
and so on… Set up with shorter terms from 12 months to 3 years.
Mr Mahoney said history had shown in Queensland that an onsite manager was the most effective way to manage holiday apartments. “ARAMA is doing an excellent job of putting forward what needs to be put forward to the government to get them to listen,” he said. “I don’t think they’ll listen to those who are saying that the term should be three years, but there could be some changes particularly to assist bodies corporate deal with the very small percentage of poorly performing managers.”
“At the end of the day it doesn’t matter how long the agreement is, if you have very robust regulations to get rid of a manager who is not performing.
“They view that this change will give them greater control and flexibility over service delivery and improve outcomes in terms of the condition of common property with cost savings. “Other bodies corporate would like to see it made easier to enforce the ‘move on’ provisions in circumstances where an underperforming caretaker is unable to resolve breaches under a 25-year agreement.
“The politicians are listening to the squeaky wheel and I’m not sure that many politicians really understand management rights.”
08 ResortNews | September 2022INDUSTRY
He said it was imperative managers proved to their committees and owners that they were doing a good job.
But now some lot owners are looking to break up the caretaking contract into separate specialist trade contracts, for cleaning, gardening, pool care, handyperson, building contracts
This would be a win-win for the body corporate and caretaker where the former can retain quality outcomes and control and the latter can retain the long-term agreement.”
He states that research confirms security of tenure, combined with clear performance expectations (and clear remedies), together with a positive management relationship leads to better outcomes.
If they’re no good, who cares if the agreement is one year or 25? If they’re doing a really good job, you want to keep them.”
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Trevor Rawnsley, CEO, ARAMA
One of the main reasons ARAMA started the TOP awards program in the first place was to recognise and reward outstanding service providers in order to highlight the positive aspects of the MLR business model.
One of the most important maxims for anyone working in Management and Letting Rights (MLR) is that to be in the hospitality industry you have to be hospitable! Likewise, to be in the service industry you have to provide good service. That’s the mantra of Michael Cross, who with his wife Karen, took out this year’s TOP Award as Building Managers of the Year for the amazing work they do at the Gold Coast’s Dorchester on The Beach.
Michael said: “We’ve been at Dorchester on the beach for eight years and we love it.”
“Karen was working on that with ARAMA and we were probably the first hotel or management rights building to put the plan in place,” Michael said.
10 ResortNews | September 2022INDUSTRY REPORTARAMA
“We’ve got a little geographical cluster group of 20 or 30 people where anyone in management rights can get together once a month for a chat,” Michael said. “We help each other because it’s not only the right thing to do but also because our business seems to grow every time we help someone else. “I’m a strong advocate that there’s strength in numbers. You shouldn’t see properties around you as the opposition. We are all in this together and if we can raise the profile of someone else’s business then
Michael and Karen Cross won last year’s TOP Award in the category of Resident Managers of the Year, Short Stay letting, and this year were rewarded as Building Managers of the Year
The TOP awards are a way for us to demonstrate that our managers do some really fabulous things, and that our most successful operators are the ones who understand what service to others means.
Service with a smile makes TOP Awards work
Our industry is occasionally attacked by people or organisations who are ignorant about the benefits that a resident manager delivers to a community title scheme, who don’t understand the role of a resident manager, or who are jealously trying to poach the various jobs performed by resident managers.
“ARAMA was working with the Queensland Government at the time to get something implemented and our plan became something of a template for the industry.”
Since taking over the management rights in 2014, Michael and Karen have been involved with repainting and repairing concrete cancer. They upgraded the property’s windows and its fire safety and electrical systems, as well as re-landscaping the gardens. They also helped ARAMA implement our COVID safe plan.
“The building is 40 years old but still in good shape, and regular maintenance is an important driver of guest satisfaction The property has to look good even if it’s an older building. We used the two years of COVID to do a fair bit of work around the property.”
Michael and Karen are tremendously helpful to everyone else in the field of MLR.
The Top Awards made for a phenomenal night with close to 300 guests sitting down to a gala dinner at the Brisbane City Hall. It is a beautiful location that looked absolutely magnificent on the night.
All of this year’s TOP Awards winners get on well with their body corporate committee and the body corporate manager and they go the extra mile to satisfy their client/lot owners and their customers/tenants. This is the ‘Triangle of Management’. Add in service with a smile and a hospitable nature and be assured that success will follow.
“It’s a nice touch. Kids love that and you always hear them saying ‘this is the best place ever’.”
“So, after lockdown we decided to try to promote a real sense of togetherness. “We set up a lot of community engagement for our tenants as well as Facebook competitions.” “We started a ‘hidden duck’ competition which is the best thing to get people out and about and talking to each other. We hide 250 yellow plastic ducks throughout the gardens and common areas and the kids and adults run around trying to find them. They bring them back to the office for a raffle ticket so we get to meet and chat to everyone.
When Rod’s property was threatened by the rapidly rising Brisbane River during devastating floods, Rod used what he described as “empathy and connection” to deal with it. Residents and guests helped staff to push cars out of knee-deep water.
Maree said ARAMA’s online resource had been a tremendous help to their business while our regular functions and gettogethers had been essential to see the fantastic ideas other managers were implementing. Ian told me the TOP Awards was the first and only time he’ll be wearing a suit but changed tack when I said he had to enter the awards again next year.
“We were absolutely thrilled by the ARAMA TOP award,” Fran said, “apart from our children I don’t think we’ve ever been prouder of anything.
Helping others is the hallmark of Rod Argyle, who has been the General Manager of the Riverside Hotel in Brisbane for five years. He is the Resident Manager of the Year (Mixed Letting Category).
“Our team of cleaners, led by Kenny and Annie have been exceptional, along with our maintenance guy, Alex.
“People come to have a holiday and to be greeted with a smile and to find out where the good things are to visit,” Fran said “If I know it’s their birthday or some other celebration, I make up a hamper and I include a bottle of champagne and a little card.
“The prizes for the monster raffle include Westfield vouchers, photography packages, lots of toys, remote control cars, watches, and all sorts of different things.
We’re encouraging more managers to enter the TOP Awards next year because it gives all entrants the chance to reflect on what they do for others, and what they are doing well to make their own businesses work.
The TOP Award winners all abide by the principals of the ‘Triangle of Management’ and this is what sets them apart from the rest. Understanding of and adherence to the ‘Triangle of Management’ is what sets the business of management rights apart from any other outside service provision.
“We really knew nothing about working in management rights when we started here and we had to rely on the support from our suppliers as well as ARAMA who have been outstanding.”
Ian and Maree Smith, from Hidden Grove and Brays on Vista, north of Brisbane, were the winners of the Resident Manager of The Year Award for Long Stay letting They oversee 150 units and have promoted a real sense of community in their schemes after taking over in March 2020.
Everyone in MLR faces a constant challenge in their own scheme to continue to prove that long-term management rights are in the best interests of the scheme.
“COVID hit us two or three weeks after we moved in,” Maree said, “and everyone went into hibernation. We didn’t even know who was living here. We never met any of the tenants and no one came to the office.
“It’s been a challenging couple of years, for sure. During COVID I had to let over 30 staff go, and that was heartbreaking.
Marketing experts say it costs five times more to gain a new customer than to retain an existing customer, and that good service is the key to repeat business.
Fran said the secret of their success was that she and Paul treated everyone as welcome guests.
“We had to learn on the job very quickly, but we’ve been blessed with some lovely owners and we’ve had great support from our body corporate committee.
We’ve had to adapt quickly and we’re finally coming back. “In this business we’ve got to help each other and always strive to improve. Winning a TOP Award was validation of a great team effort.” Paul and Francine Tuddenham, who won the Resident Managers of the Year (Short Stay letting) award, hit the ground running, only taking on their first management rights business on July 1 last year at the Peninsula at Airlie Beach.
It is the manager’s job to take responsibility and tackle any problems head on.
11ResortNews | September 2022 INDUSTRY the profile of everyone next door will be raised too. We believe that every ARAMA member should take the time to work on the business every now and then and submitting an application to the ARAMA TOP Awards can open up a great opportunity for self-actualisation and self-help.”
“We all pitched in to help,” Rod said. “Our lifts were taken out, and on the second night of the flood all the electricity went too. “But I had all my team on the floor helping people. We had a little gas barbecue, and we were cooking food, handing out sausages on a roll and hot tea and coffee to people.
The TOP Award winners know that fundamental to management rights is the realisation that the job is for service providers, and that they have to give great service to their customers, who in many cases are their neighbours.
“I buy chocolates, too, and Kenny and Annie put them on the pillows when they clean the rooms.
“It’s continued every year and it helps promote a sense of fun and togetherness.”
What the building manager didn’t do
Lessons for building managers from a recent court case
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The section further states that NCAT may make an order under this section on any of the following grounds:
The owners corporation was also dissatisfied with the performance of the building manager and ultimately commenced proceedings in NCAT, seeking an order that the building management agreement be terminated pursuant to s72 of the Act.
12 ResortNews | September 2022INDUSTRY REPORTSTATE
Section 72 of The Strata Schemes Management Act 2015 1. An order terminating the Agreement; 2. an order requiring the payment of compensation to a party to the Agreement; 3. an order varying the term, or varying or declaring void, any of the conditions of the Agreement; 4. an order that a party to the Agreement take any action or not take any action under the Agreement, or; 5. an order dismissing the application.
Specifically, the owners corporation sought an order on the basis of several parts of s72, including:
The case The strata plan in this matter was registered in January 2001 and covered two buildings in Ultimo, Sydney that were originally developed by Meriton. In October 2000, Meriton sold the caretaker management rights to a building management company which has had control of those rights since that time. However, for whatever reason, the owners corporation did not receive a full copy of the building management agreement until 2020! When the owners corporation eventually reviewed the building management agreement, they discovered that the agreement only provided for annual increases in management fees in accordance with the CPI. The building manager however, had been charging annual increases of 5 percent, since October 2000.
• that charges payable by the owners corporation under the agreement are unfair; • that the building manager failed to disclose that he had a direct or indirect pecuniary interest in the strata scheme, or was connected to the developer, and • that the agreement is, in the circumstances of the case, otherwise harsh, oppressive, unconscionable or unreasonable.
• that the building manager has refused or failed to perform the agreement, or has performed it unsatisfactorily;
On my reading of the case, the building manager made a lot of mistakes that would have been avoided, if they had read and understood their agreement.
What not to do as a
Col Myers, Small Myers Hughes building manager
A recent decision of the NSW Civil and Administrative Tribunal (NCAT) has provided owners corporations in NSW with what is now seen as a more “risk free” pathway to terminate a Building Management Agreement Until recently, if an owners corporation was not satisfied with the performance of its building manager, it has been usual practice that the owners corporation would commence legal action to terminate the agreement, by alleging that the building manager was in substantial breach of one or more of the agreement terms - or failed to satisfactorily perform the building management duties under the Agreement.
• that the building manager had performed the agreement unsatisfactorily; • that the charges payable by the owners corporation under the agreement were unfair; • that the oroppressive,ofwas,managementbuildingagreementinthecircumstancesthecase,harsh,unconscionable,unreasonable.
Background
The danger however with this approach has always been that if the court later decides that the building manager was not in substantial breach of the agreement, the owners corporation is then liable to pay substantial damages to the building manager for the wrongful termination of the building management agreement.
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Phone: (07) 5534 4333 Fax: (07) 5534 2081 reception@jonathangrant.com.au www.jonathangrant.com.au
The decision
1300 ARAMA Q (1300 27 26 27) For membership enquiries: national@arama.com.au | www.arama.com.au
Are you looking for a pre-purchase nancial veri cation report, pro t and loss for sale or just an accountant who really understands your management rights business?
For example, the building manager: 1. refused to provide the owners corporation access to CCTV footage; 2. failed to provide keys when requested by the secretary of the owners corporation; 3. failed to provide the owners corporation with a proper copy of the building agreementmanagementuntil2020;
4. had been charging the owners corporation based on 5 percent annual increases, instead of the CPI increases as specified in the building management agreement; 5. allowed the principal of the building management company to be a member of the strata committee, although prohibited under the managementbuildingagreement;
The finding in this case was that the building manager had failed to perform the relevant agreement satisfactorily, and that the building management agreement, in the circumstances of the case, was harsh, oppressive, unreasonable or unconscionable.
Takeaways • This sounds really basic, but always have a 100 percent understanding of what your duties are under your offromandmanagementbuildingagreementdon’tdeviatetheperformancethoseduties.
Although not relevant to this case:
• Diarise your option exercise dates and don’t miss them. If you are one day late, you lose the ability to exercise the option (and later options) and your remaining term falls away.
Always have a 100 percent understanding of what your duties are under your building management agreement
• Wherever possible, maintain good lines of communication with your committee and strata manager.
Australian Resident Accommodation Managers Association is the peak industry body representing the interests of people who are involved in management rights.
13ResortNews | September 2022 INDUSTRY Structuring Income Veri cation Accounting/Taxation Superannuation Audit PO Box 391 WEST BURLEIGH QLD 4219
6. allowed its employee to improperly commence and pursue Supreme Court proceedings in the name of the owners corporation, attempting to prevent the 2020 AGM from going ahead, without proper authority or instructions; and 7. had, through the conduct of the principal and employees of the building manager prior to the 2020 AGM, falsely represented that the AGM had been cancelled, which conduct was allegedly borne out of a desire to control the owners corporation, rather than to serve the owners corporation, as required by the building management agreement.
• Stay in regular touch with your owners by way of a newsletter. Let them know the good things that you do at the complex and remember, you only need 51 percent of those owners that vote at a meeting of the owners corporation (or body corporate) to extend the term of your Building Management Agreement.
Jonathan Grant Accountants operates within a wide referral network of other professional industry specialists and we are dedicated to ensuring you receive the right advice from the right people.
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We provide a comprehensive range of compliance and consulting services for all entity types operating within the industry.
• Assisting in increasing your letting pool • Specialised marketing to outside Investors • Build and nurture client relationships • Educate investors - advantages of onsite management • Negotiate letting fees and charges • Database update and entry • Newsletters • Protect and defend your letting pool • Trained in selling cooperatively with On-site managers • Educated by Industry Leaders • A friendly sales agent that understands your business • Specialised in unit and townhouse selling • Encourage all investors back to your letting pool • Trained to protect and defend your letting pool your letting pool E: kelley@lettsrebuild.comM:0402158136 lettsrebuild.com FRIENDLY AGENT BUSINESS DEVELOPMENT RESIDENTIAL REAL ESTATE Partner with Kelley to help protect&defend
“As an interstate buyer the process of buying a property had been very stressful and daunting until I has the pleasure of dealing with Kelley. She always made the time to answer any questions promptly and helped us every step of the way. I’d highly recommend Kelley to anyone buying a property.”
– Gene Seabrook, Vendor
“Kelley is a great business partner to work with, she has very good knowledge of the real estate market and done works efficiently. I highly recommend her and look forward for a chance to be working with her again in future.”
– Emma Winterm, Buyer
– Greg May, Vendor Excellent from start to finish “Kelley kept us up to date the whole time, Kelley also achieved a price for us that was beyond all expectations. A faultless experience!”
Well done Kelley, you have been my guardian angel to selling real estate.”
Kelley knows her real estate
“Kelley was professional, efficient and knowledgeable in her field. The sale of our property was effortless for us as Kelley did all the work. We would have no hesitation to recommend Kelley for selling a property. Thank you Kelley - It was a pleasure dealing with you.”
– Marion Simon, Boulevard North “Working with Kelley was a great experience, Kelley always responded promptly to our emails and worked us through the entire sales process which was efficient and professional.“
– Bobby & Tiff any, The Hudson On Albion Hill “Kelley was able to reach our outside investors on a level that we just couldn’t achieve. The results were immediate, and we were able to bring several investors back into our letting pool. It really is a no brainer. To say we recommend Kelley is an understatement”.
“This is the 2 property Kelley has sold for me. As a Realestate Agent she’s absolutely second to none! She’s the most outstanding professional to work with on any scale! Honest, quick and thorough and amazing call to action end to end process. Clear and concise communication that’s explained in easy to understand terms. She creates a n environment of complete confi dence and trust. If only you could sell my other one in Perth! Looking forward to buying and selling more with you every time!”
Amazing agent and outstanding professional
Kelley made every step of the buying process an absolute breeze for us, any questions regarding ANYTHING I genuinely felt I could call and ask for advice without hesitation. I would most definitely 110% recommend Kelley Rigby for any of your real-estate/ business needs! Shes a superstar!! 11/10”
– Chris & Emma Lane, Cellas Real Estate
– Seiko Ma, Bodhi Tree Group “Kelley answered all my questions promptly, guided me through the contract and finalising all the details. Kelley is a gem and is the person you cannot do without when you are working on your own and require that expertise to tweak everything.
– Craig Russell, Vendor Superstar!!
– Cathrine & Luke Dat, Buyer
“It is with pleasure that I am given the opportunity to write a testimonial for Kelley Rigby. I have known Kelley for many years. Kelley comes from a lovely family and has learnt and breathed the industry since she was a little one. Kelley is an industry revelation. She is enthusiastic and dedicated to her clients and their success. Once Kelley in involved she becomes immersed in the issue and is one of those rare persons that ‘owns’ the task. I applaud Kelley in her new venture and would thoroughly recommend her to prospective clients.”
What sayvendors/buyersyouraboutus E: M:helpfulperson@friendlyagent.com.au0402158136 friendlyagent.com.au FRIENDLY AGENT What aboutindustrythesaysus
Excellent sale experience “I recently sold my Qld investment property with Kelley’s assistance. The experience was very smooth and stress free as Kelley managed everything from go to woe, which l greatly appreciated given that l live interstate. Kelley was professional, regularly communicated with me, kept me up to date with progress and promptly responded to any of my queries.”
“Kelley is an absolute gem! From the moment I first spoke to her regarding a property she was very professional, very knowledgeable but also the most kind and caring person, I felt an immediate connection with her, she’s that genuine soul we all need when venturing into the property market, or any business deal for that matter!
– Mike Chairman,O’Farrell,MLRServices
– Ross Treleaven, Vendor Very professional and a pleasure to do business with!
– Cathy Davis, Airlie Apartments “Kelley is my hero! She is my go to lady for advice and guidance on everything related to our industry. Selling properties in our apartment complex is so easy with Kelley taking care of all the paperwork, legal matters and admin, allowing me the time to concentrate on finding my owners the best possible buyer. The professionalism and experience that Kelley adds, makes me confident and capable. The practical and balanced suggestions that Kelley offers for a large range of questions makes this complex industry so much easier. Kelley is also exceptionally well known and respected in the industry and is a networking queen! So anything that I need, Kelley is a phone call away, making complex challenges, simple and easy to remedy”.
While attempts to breach this private sphere can understandably cause distress, the reality is that a resident in a body corporate does not enjoy the same level of autonomy as the owner of a detached dwelling. Community living means that there are circumstances when the body corporate, or in some cases, another lot owner, can rightfully enter your lot.
Many residents view their lot as being in a private sphere that is insulated from the rest of the body corporate. Within this sphere, there is naturally an expectation of privacy and freedom from interference.
The legislation endeavours to strike an appropriate balance between the fundamental right to privacy and the right of entry by placing clear limitations on entry and requiring notice of entry to be provided. This article mainly focuses on the body corporate’s power of entry under section 163 of the Body Corporate and Community Management Act 1997 (the Act). The right to access a lot or common property in situations where a statutory easement exists is also discussed. Limitations on entry under section 163 of the Act A body corporate can only exercise the power of entry under section 163 of the Act for a specified purpose. Essentially, a body corporate can authorise a person to enter and remain on a lot or an exclusive use area while it is reasonably necessary to either: • inspect the lot or exclusive use area to find out if work the body corporate is authorised or required to carry out is necessary; or • to carry out work the body corporate is authorised or required to carry out. Having clear bounds on the power to enter acts as a safeguard against unnecessary entry into someone’s private domain. This has been demonstrated in a number of matters where the entry sought by the body corporate was determined to be outside the scope of section 163 of the Act.
16 ResortNews | September 2022INDUSTRY REPORTBCCM
For example, in the Queensland Civil and Administrative Tribunal (QCAT) appeal of Body Corporate for Grand Pacific Resort CTS 29576 v Cox [2012] QCATA 14, a body corporate sought entry to a lot to inspect and determine if there were unauthorised internal alterations which required a development approval for the building work. The body corporate also wanted to confirm whether the alterations had breached a by-law. It was noted that the body corporate “failed to identify to the adjudicator any legal basis for it being entitled or obliged to carry out the works”. While reference was made to a by-law requiring body corporate approval to make structural alterations to a lot, the QCAT member remarked that no evidence was provided of any by-law or other powers entitling or obliging the body corporate to rectify unauthorised structural alterations. In the QCAT appeal of Penno v Body Corporate for the Oasis –Dunmore CTS 29301 [2019] QCATA 65, the members determined that the body corporate could not enter the lot to do routine work on the adjoining garden beds, as it was not reasonably necessary in the circumstances. The reasonableness requirement arose not only because section 163 of the Act requires the entry to be “reasonably necessary”, but also because section 94(2) of the Act requires a body corporate to act reasonably, including in exercising a statutory right or power. The members said that the reasonableness of the entry should therefore be considered “in the context of the law’s strong protection of the inviolability of a
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Damian Quinn person’s home”. It was observed that the gardening was for “merely aesthetic” purposes and that other options for accessing the garden beds were available.
The legislation does not specify what details must be included on the written notice. Rather, section 163 of the Act simply provides that entry must be exercised at a reasonable time at least seven days after written notice of the intended entry has been given. While the body corporate is not obliged to provide information on the notice about the entry, not doing so increases the likelihood of resistance. To preserve good working relationships and avoid unnecessary conflict, it is recommended that the notice includes information such as the date and time of entry, the reason for entry, the estimated duration and the names of persons authorised to enter.
On the opposite end of the spectrum, there have been multiple decisions confirming the body corporate’s right to authorise entry under section 163 of the Act. For instance, in Skyline Apartments [2022] QBCCMCmr 142 the adjudicator accepted the body corporate’s right to authorise a person to access the lot to find out if the fire door was compliant and, if not compliant, to replace it. Also, in Ocean Pacifique [2020] QBCCMCmr 330 it was held that the body corporate could authorise entry to carry out lift upgrades that were approved at an extraordinary general meeting. Similarly, in Attenborough 4 [2020] QBCCMCmr 120 it was concluded that authorised persons could enter the lot to obtain quotes and carry out repairs to the damaged ceiling.
Examples of rightful entry under section 163 of the Act
17ResortNews | September 2022 INDUSTRY SUNSHINE COAST & QUEENSLAND WIDE Damian Quinn (07) 5443 www.simpsonquinn.com.au5266 • Commercial & Business Law • Property Law • Litigation & Dispute Resolution • Retirement Villages • Wills & Estate Planning • Body Corporate One of the Sunshine Coast’s most experienced firms in on-site management rights transactions.
Including noticeinformationadditionalontheofentry
In Contessa Condominiums [2021] QBCCMCmr 443 it was contended that section 163 of the Act does not permit an authorised person to leave something on or attached to the lot for the duration of the works – rather, that it only allows the person and their equipment to remain on a lot while it is necessary to inspect the lot or carry out work. In this case, the respondent was concerned about a mast climber being left attached to the balcony soffit, between workers’ visits. The adjudicator declined to take that “narrow view” of section 163, noting that attaching the mast climber for the duration of the works was reasonably necessary for the body corporate to carry out the work. The adjudicator considered that to find otherwise would frustrate the purpose of the section and also noted that the narrow view would similarly and impracticably require things like abseiler’s anchor points and scaffolding to be removed and reinstalled for each visit. From the mixture of decisions outlined so far, it is apparent that determining when a body corporate can authorise entry, is not always black and white, it depends on the context and circumstances each time.
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If access is reasonably necessary for the purpose of inspecting or carrying out work the body corporate is authorised or required to carry out, the body corporate must give written notice of the intended entry to the owner or, if the owner is not in occupation, to the occupier.
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There is a misconceptioncommonthat written notice still requires a body corporate to obtain consent to the entry. To clarify, entry by authorised persons under section 163 of the Act is not conditional upon an owner or occupier being agreeable to the entry. Section 163 does not require the body corporate to negotiate about a more suitable time to enter or about the persons authorised to do the inspection or carry out work.
Like the power to enter under section 163 of the Act, there are also limitations on the exercise of rights under a statutory easement. If a statutory easement exists, section 68 of the Act provides that it can only be exercised in a way that does not unreasonably prevent or interfere with the use and enjoyment of a lot or the common property.
Alessandra Place [2007]
QBCCMCmr 417 involved a duplex scheme where the electricity power board and water meter for Lot 2 were both located on Lot 1. It was held that the owner of Lot 2 was entitled to access the relevant utility infrastructure under a statutory easement, provided it was exercised in line with section 68 of the Act.
First, a lot is someone’s private domain. As the saying goes, your home is your sanctuary.
The adjudicator in Whitecrests by the Sea [2021] QBCCMCmr 280 summed up this position clearly by emphasising that, in many respects, the right of entry is non-negotiable: “Compliance with an entry notice under section 163 of the Act is not contingent on an owner or occupier’s satisfaction with the entry arrangements. The power of entry under section 163 is not conditional on an owner or occupier’s consent to the entry. It is a statutory power that the body corporate is entitled to exercise regardless of whether the owner or occupier agrees.”
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In view of the potentially contentious nature of entry rights, it is critical for all involved to keep the lines of communication open and avoid escalation wherever possible. There are, perhaps, two key points to bear in mind in these situations.
Of course, there is nothing stopping an owner or occupier negotiating with their body corporate to determine if there is any flexibility around the intended entry or to seek further information, and a body corporate must always act reasonably in the circumstances, as noted above. It only becomes problematic when there is a false expectation that the body corporate must work around the owner’s or occupier’s conditions.
Critically, owners and occupiers must be mindful that it is an offence to obstruct an authorised person who is exercising (or attempting to exercise) the power of entry under section 163 of the Act. Consequently, it is possible for the body corporate to take action in the Magistrates Court.
18 ResortNews | September 2022INDUSTRY
A statutory easement (distinct from the power of entry under section 163 of the Act) entitles the body corporate, or a lot owner, to enter or use a lot or common property in certain circumstances.
Exercising statutory easement rights
Where there is a statutory easement the body corporate can enter a lot (or a lot owner can enter another lot or the common property) to carry out work, provided that it is exercised in accordance with section 68 of the Act.
Alternatively, in Edgewater [2011]
QBCCMCmr 230 a lot owner sought to install an airconditioner on common property, this was declined by the body corporate. The adjudicator noted that the question of whether a statutory easement exists was a relevant consideration in ultimately determining whether the body corporate’s decision was reasonable. It was acknowledged that as the air-conditioner is utility infrastructure which provides a utility service, “a statutory easement exists in favour of Lot 31 and against the common property for this infrastructure”.
The various types of statutory easements that may exist in a community titles scheme are provided for in Part 6A, Division 5 of the Land Title Act 1994 Limitations on the exercise of rights under a statutory easement
Required notice of entry
As with the right of entry under section 163 of the Act, notice of entry must be given by a lot owner (or by the body corporate) when exercising statutory easement rights, unless it is an emergency. However, while section 163 of the Act requires entry to be exercised at a reasonable time at least seven days after written notice of the intended entry has been given, section 68 of the Act simply provides that reasonable written notice must be given, no timeframe is specified for the notice. What is reasonable will always depend on the circumstances.
Second, community living means that the right to privacy must sometimes bend to the needs of the body corporate as whole. Information about entering a lot or exclusive use area and statutory easement rights can also be found on our website.
A statutory easement may exist for accessing utility services and utility infrastructure, projections such as eaves, awnings or windowsills, or a building structure when it is supplying common wall support to another building, to list a few examples.
Notice of entry not required in an emergency Section 163 of the Act makes it possible for the body corporate to dispense with the normal notice requirements in an emergency. We often receive questions from our clients about what constitutes an emergency in this context.
It was ultimately determined that only 24 hours written notice was needed to enter the lot and carry out work in the bathroom to stop the leak.
If a lot owner is the one exercising statutory easement rights, in addition to the requirement to give reasonable written notice to the body corporate, or to an owner or occupier, they must also abide by any security or other arrangements normally in place.
Consent not required to enter
When a easementstatutorymayexist
While there is no clear definition under the Act, orders of adjudicators may provide some guidance on this point. For example, in the case of Arila Lodge [2016] QBCCMCmr 342 the adjudicator accepted that emergency circumstances existed where there was a water leak. The adjudicator remarked that it was their opinion that “any water leak should be addressed promptly to avoid damage”. Other key factors such as the “escalation of the leak” over time and possible safety issues arising from water leaking into light fittings were also noted.
These changes, despite being prompted by a single scheme will impact more widely on many people who live and work in BUGTA and MUDA schemes.
It is important to understand that the BUGTA regulates large, complicated schemes and these communities are often reliant on their body corporate to deliver many of the services most of us ordinarily expect to be delivered by our local council. This includes services such as rubbish removal.
Queensland is perhaps the only jurisdiction in Australia with multiple, complex pieces of readerslegislation.strataManyof Resort News will know and love (or not) the Body Corporate and ManagementCommunityAct
The Bill as it stands is a significant improvement on the exposure draft, and much of the credit for this re-drafting can go to the SCA (Qld) Board and specifically the advocacy directors. This is a direct win for strata which SCA (Qld) can chalk up as its own. It shows just how much energy and impact the sector has, when we work as a unit together.
The major changes that are afoot include a requirement for BUGTA bodies corporate to act reasonably; obligations to recover unpaid levies after two years and two months; very strict requirements around who can be a member of a committee; the ability for a referee to make costs orders in very specific circumstances; and new information and education services for BUGTA regulated schemes.
The Building Units and Group Titles and other Legislation Amendment Bill 2022 is currently before the Legal Affairs and Safety Committee for review. This Bill will amend the Building Units and Group Titles Act 1980 (BUGTA) and the Mixed-Use Development Act 1993 (MUDA). These Acts regulate several complex, layered resort style schemes that were not moved across to the Body Corporate and Community Management Act (1997) after the passage of that legislation through parliament. These changes were brought about by significant issues at the Couran Cove development on South Stradbroke Island.
Changes to BUGTA
1997. But there are almost 600 schemes across the state regulated by much older, and in some instances their own special piece of legislation. These are the Building Units and Group Titles Act 1980 (BUGTA) and the Mixed-Use Development Act 1993 (MUDA). There are also a select few scheme specific Acts such as the Sanctuary Cove Resort Act 1985 which have some interplay. Following significant issues being found and widely circulated, the Queensland Government chose to act.
Beyond the specifics of the Bill, the changes to the BUGTA indicate something much bigger - the state government is listening to, and acting on, the concerns of the strata sector.
SCA(Qld) will work with members and affected schemes upon the passage of this legislation to ensure that they understand their obligations and see that they are able to improve their Governance and help ensure a smooth transition.
The changes are extensive and will affect about 580 schemes which are still governed by the BUGTA and other associated Acts in Queensland. SCA (Qld) has been involved in consultation and development of this Act for several months now and we are mostly pleased with the final product. Recently members of the advocacy team, including myself, appeared at a public hearing into the Bill. We advocated strongly for important protections for bodies corporate constituted under the BUGTA and for the rights of proprietors in schemes to participate in body corporate decision-making.
19ResortNews | September 2022 INDUSTRY
SCA (Qld) I am quickly finding is an advocate for the whole sector working for the benefit of the entire strata community. Our successes are shared, and we will continue to push for best practice to deliver for the whole strata sector. The time to bring Queensland strata law into the 21st century is long overdue, but finally, it seems to be here.
Kristi Kinast, President, SCA (QLD)
QLD - NSW - VIC - WA
SCA (Qld) getting a seat at the table for Queensland strata is a win in and of itself. With strata reform on the horizon, SCA (Qld) will not let the opportunity go to waste. We are here to be the collective voice of the 1.2 million Queenslanders who live or work in strata title properties.
Positive reform to the strata sector requires all stakeholders, including managers, lot owners and service providers to work together to balance competing interests and deliver equity and fairness. We believe the Bill as it stands mostly achieves this.
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REPORTSCA
Jonathan Hanaghan, Director, Jonathan Grant Accountants
Step 6: Income verification Your accountant will complete the income verification in
How to increase your charges in these inflationary times Letting appointments:
11 step purchase process
You may want a permanent with minimal office and garden hours or you may be chasing a dollar and wanting to purchase a larger short-term complex or perhaps something that has been run down and in need of some TLC.
Making sure you understand each is crucial. In essence this gives you three get out of jail cards, should you need them, or your circumstances change through the process.
In each case make sure that you retain on the owners’ files a copy of the new appointment, schedule and/ or email confirmation as that will be required in the event of an OFT audit or for income verification purposes in the event of a future sale.
ACCOUNTSALLBYEASELEGAL
• emailing your owners with details of the proposed increases to the items listed in your email and asking them to confirm by return email their agreement to the increases.
This list is by no means exhaustive but a general guide.
However, a manager cannot simply unilaterally increase such charges other than in accordance with any increase that might be permitted in the lett ing appointment. For example, in the ARAMA lett ing appointment addendum which I prepared there is a right to increase fees and charges each July in accordance with the increase in CPI for the previous year. Even though that was around 7 percent last year that would be well short of the actual increases many managers have faced. So, what is the best way to go about securing an increase in your charges? Critically the consent of the owner is required. Such consent must be in writing - in this regard an email will suffice.
Step 2: Find out what your budget is Seek advice from an industry specialist financier or finance broker to determine how much you can borrow and what your budget is.
In recent months I have had many clients ask how to go about increasing their fees and charges to their letting owners.
Generally speaking, the contract will contain three major conditions. First, income verification, second finance and third legal due diligence (which also covers body corporate approval).
20 ResortNews | September 2022MANAGEMENT
• sending your owners a new lett ing appointment with an updated schedule of fees and charges and having that signed and returned to you;
Some of you may require a more detailed approach or if you’re luckily enough maybe even a simpler approach.
Pre-contract
Step 4: Engage an industry accountantspecialistandlawyer
There are diff erent ways to go about gett ing that consent including:
Thinking of buying a Management & Letting Rights business?
Post-contract Step 5: Sign the contract
Like all business owners, my management rights’ clients are being faced with significant increases in the cost of the services they provide their owners (particularly short-term businesses) where cleaning contractor charges and linen charges have risen dramatically. In one week two of my clients advised that not only had their linen charges costs gone through the roof but they were now expected to travel to the linen supplier’s premises to drop off and pick up linen!
they greatly vary. Typically, your accountant will establish the structure then your lawyer will document the contract and advise you on the details.
This article is aimed at the firsttime buyer into the industry. I will now go through a basic staged plan to assist with the process.
• sending your owners a new schedule of fees and charges asking them to either sign and return that schedule or confirm by email receipt of an agreement to the new schedule; or
John Mahoney, Mahoneys
Step 3: Find the right complex & negotiate price
This will solely depend on your circumstances. Discuss your offer with the applicable agent and hopefully you will have a verbal agreement. It’s not uncommon for the offer and acceptance process to take some time.
Step 1: Do your homework Review as many businesses as you can. Get a feel for the type of complex that ideally suits you.
You will need both to assist you with the process, but immediate priority needs to be the establishment of a business ownership structure. This can be either as a sole trader, partnership, company or trust or a combination depending on your incircumstancesTaxationcircumstances.andassetprotectiongenerallyweighheavilywiththischoiceas
Advice from your industry recognised accountant should be sought before just going with “what the vendor was using”.
Step 10: Record keeping
The Licensee name is the name of the licensed company or person/s being appointed as the lett ing agent. If your company is the lett ing agent the licensee name is the company’s name – it is not the name of the licensed director or licensed person in charge. If you are the lett ing agent personally, then the licensee name is your personal name/s.
After all the body corporate committee can be your strongest advocate or your worst nightmare.
Good luck to all those readers looking to purchase sometime soon!
21ResortNews | September 2022 MANAGEMENT
Step 8: Follow your solicitor’s advice Your solicitor will guide you through legal due diligence including obtaining body corporate approval.
It is rare that a week goes by that I am not asked to look at a lett ing appointment and I am often surprised at the nonchalant or careless approach some managers take towards their appointments and how many errors I see. That is why I favour updating all your appointments and why I thought I would share some of the common problems I see. I regularly see appointments with the wrong name of the actual lett ing agent, the wrong licensee, dates missing, signatures missing and in more than one case a lett ing agent had ticked the service as “sales” rather than lett ings! Managers are often confused about the trading name and the licensee name in part 2. The trading name is your registered business name (if in fact you have one – such as Moonlight Shores Management). If you do not have a registered business name but operate as a company, you may insert the company name. It would never be your personal name/s unless that is also your business name which would be most unusual.
Careful consideration needs to be given to record keeping for the trust and general bank accounts. We recommend specialised software be purchased or leased.
In summary always stick to and take advice from your industry experienced accountant, financier, solicitor and sales agent and the purchase process should run as smoothly as possible.
Settlement Step 11: Hand over process
Make sure that in part 4, section 2 you select “continuing appointment” and complete the start date. In part 4 section 3, for permanent rentals make sure you state the asking rent, or more appropriately, the range of acceptable rents. If it is a holiday or short term lett ing, state something like: “In accordance with tariff s advertised on our website as varied for market conditions.” Part 4, section 4 (Instructions/ conditions) must be completed or, as ruled by one court already, the appointment is invalid. I will assume that you are using one of the industry forms which have an addendum or special conditions att ached. That being so, add in this section words such as “Refer to att ached addendum”. In the commission section the wording would be something like “5.5 percent of rent collected plus lett ing fee and relet fee described in addendum” for permanent rentals. In the following commission payable section, I like to see the words “When rent payments are received and payment thereof are made to client”. Pay particular attention to part 8, section 1 which relates to expenses you may incur on behalf of owners, not fees and charges you might impose. There is a critically important diff erence. If an item (such as advertising) is shown as an expense you can only retain the actual expense you incurred and cannot retain any amount above for your time and eff ort. It would be appropriate to use words such as “Refer to any such items in att ached addendum shown as expenses” here. There should again be reference to the addendum or schedule of fees and charges in section 3 of this part. Be careful to give details of any benefi t you might receive personally in part 8, section 4 eg., credit card reward points or commission on insurances you might arrange. The various industry forms have diff erent special conditions or addendums and special care should be taken in completing these. The ARAMA addendum is relatively simple to understand and to complete. Importantly it has some very carefully worded conditions dealing with the agent’s entitlement to make a profi t from providing certain services to an owner or guests. If you off er holiday lett ings or short term lett ings you may need to include what are commonly referred to as the “forced sale provisions” in accordance with the managed investment provisions of the Corporations Act . If at all unsure, check with your lawyer to see if they are required – it is critical that they be included if they apply to your complex.
Benefits of sending out new appointments Whilst sending out a new appointment is the most time consuming and difficult option to manage, it is something I seriously suggest you consider if the bulk of your lett ing appointments are more than fi ve or so years old. I also suggest it is essential that you do that in the case of any old PAMDA Forms 20a . Doing so will allow you to overcome any deficiencies in your appointments and to update your appointments with the latest ARAMA addendum.
This article is aimed at the first-time buyer into the industry
I also recommend having a coffee or similar with the chairman/chairwoman of the body corporate as soon as possible following settlement.
You will need to negotiate the hand over process with the vendor which commonly is one week prior to and one week following settlement. Try to extract as much knowledge from the vendors as possible during the agreed period.
Step 7: Obtain finance Your financier will require a copy of the income verification report and various other documents. Your financier may also require amendments to the body corporate caretaking agreement.
Unconditional contract Step 9: Statutory and licensing requirements Make sure all applicable ATO registrations are in place as Australian Business Numbers can take up to 28 days to be processed. OFT licensing can also take longer than expected so make sure this process is well advanced.
accordance with the contract for sale. This will be for a recent twelve-month period (or projection if off the plan) with the view to verifying an actual net operating profit figure as specified in the contract. This profit figure is usually the number the vendor’s accountant has calculated for the same or similar period. Owner letting agreements are also checked and any variances in letting pool numbers during the verification period are also reported.
I’m also known online as the guy who bought a house with Lego - a strange but true story! Do tell us more?
Josh, you brought your research skills to the team but please tell us more about yourself.
22 ResortNews | September 2022MANAGEMENT
For an in-depth conversation about the report, Resort News put some questions to the research expert Josh Mangleson, Property Economist, ResortBrokers
Well, all I can say is if you Google my name and Lego, you’ll get a whole lot of results from a few years ago.
Google says you were a savvy property owner by the age of 25, with the help of your childhood toys?
By Mandy Clarke, Editor In July, aroundcollatesystemhousebespoke,utilisedTheimpactexaminedreportitsimportantReportManagementreleasedResortBrokerstheRights’2022.Itisan“oneofkindinAustralia”whichthevastofthesector.inauguralreportResortBroker’sback-of-researchtocollectandthedatafromAustralia.
• $4.8b is the estimated total value of the management rights industry; • 3,679 is the number of schemes nationally; • 250,652 is the number of lots under managementtherights model; • There are 68 average lots per scheme; • 33,000 is the number of people employed and; • there are $120b assets under management.
A&Q Q & A
Josh Mangleson, Property Economist, ResortBrokers
When it comes to the ityouReportManagementResortBrokersRights2022,whodothinkshouldreadandbenefitfromit?
I am reminded of a phrase that has been thrown around quite a bit over the past few years, but it’s one worth repeating; “Data is the new oil.” And you can’t have data without data collection!
Josh
Why ResortBrokersdoes focus on data collection?
In the years prior to ResortBrokers Research being established, the company’s directors realised data would become an important tool for the future and so they invested heavily in the data collection process. By the time I joined the team there was already a great pool of intel. The benefit to the industry is now being realised from ResortBrokers’ position as market leaders with access to rich historical data. This has enabled us to publish industry reports which have either never been done before or never executed as comprehensively.
Yes… Long story short, while studying full time at university I decided to invest all my savings into Lego as an alternative asset class. I was already a self-confessed Lego nerd and had plenty of knowledge in the area, and was studying property economics, so it made perfect sense to me. Over a couple of years, I sold it all down and used the returns (alongside an available state grant) to buy my first home (a townhouse).
This is a fantastic report for basically anyone with any degree of interest or involvement with the management rights industry. This could be in a professional capacity as valuers, accountants, brokers, solicitors, operators, government or professional bodies. And it’s also for those who possess a limited understanding of the industry and simply wish to learn more about it in terms of its scale and value, its metrics, subtypes and geographic submarkets. with Mangleson, Property Economist, ResortBrokers
The main findings by ResearchResortBrokersrevealed:
This process is invaluable to our brokers, our clients, and the broader accommodation industry because it results in an understanding that can’t be otherwise obtained. It helps at the macro level by capturing the scale and state of entire markets and asset classes, and also at the micro level by offering comparative context and clarity for regions, submarkets and even individual businesses. Why benefitandResearchResortBrokerswaslaunchedhowdoesittheindustry?
I’ve always been drawn to real estate, which is what eventually led me to complete a Bachelor of Property Economics after some years working in a home improvement store and then as a project manager for a boutique builder. Four years with the Colliers-owned PRD Real Estate corporate team gave me exposure to data at a large scale across the country, which afforded me the opportunity to refine my data analysis skillset while undertaking a postgraduate qualification in Data Science.
I did interviews with The Project NZ and Today Tonight/7 News among others, there is no doubt still some videos floating around.
An impressive achievement! And now you’ve brought your skills to benefit the management rights industry.
We’ve observed increasing demand from a range of different buyer profiles. Wellknown corporate brands, highnet-worth private operators, syndicates and private equity all compete for the biggest and best management rights. And international investors (particularly Chinese) have also been attracted to the sector. How will we see this change going forward? We anticipate ongoing activity from corporates, institutions and the Chinese market will continue to drive industry trends. We are starting to see very strong demand for permanent businesses with large net profits, and as we speak, we have just struck a deal for a recordbreaking multiplier. Expect to hear more stories like this in the coming months.
23ResortNews | September 2022 MANAGEMENT
I truly believe that expert advice can only come from experts, and this report demonstrates that ResortBrokers really understand management rights. I’d encourage anyone considering investing in management rights, whether for the first time or as a seasoned operator, to speak to one of our brokers who will help you find the best business for your needs.
The start of COVID-19 sat right in the middle of this period. It’s quite clear lockdowns initially weighed heavily on short-stay businesses; however we’ve also observed a strong recovery with most businesses now backed by a solid 12 months of trading.
Permanent schemes naturally fared better in terms of retaining their value during COVID-19 because they were less impacted by lockdowns. Their average multiplier was 4.6x, though achieved multipliers ranged anywhere from 1.9x to 6.6x. And off-the-plan?
ResortBrokers continues to work with government and peak bodies such as ARAMA to ensure the industry remains viable and represents the best interests of all stakeholders.
The report captures the performance of the management rights industry through our internal sales data from across the past five years.
There are so many things going on in our economy right now. We are seeing fluctuating interest rates, record low unemployment unusually paired with costof-living challenges, and record low rental vacancy rates, just to name a few.
Overall, we expect the strong demand for rentals and their rising prices will benefit permanent management rights businesses with significant letting components. And with 12 months of good trading now behind many shortstay businesses, we expect to see evidence of values continuing to move in a positive direction for operators. Which locations have had the transactions?most
And for businesses?managementpermanentrights
The report predicts continued growth for the industry, how accurate is this and what are the biggest threats? We have drawn a positive conclusion in our industry outlook. Despite our nation’s economic challenges, when have there ever been no issues?
Despite this, short-term multipliers have averaged 4.1x, with a range of 2.1x to 6.5x achieved, these being dependent on the location, quality and scale of the business.
For the same period, off-theplan businesses witnessed an average multiplier of 4.1x (compared to 4.5x for established businesses).
What does the report tell us about current MLR multipliers for short stay?
Tell us about buyers, what have been the key trends over the past few years?
How is the current MLR market and what does the future hold?
There are always potential threats to any industry, this is no different for management rights but there is so much more to be excited about.
For those looking to invest in the sector what is your advice?
On average these naturally sit lower, given developers are using income projections to estimate the future value of the business.
The markets with the most schemes have naturally recorded the most transactions. Brisbane, which has more than 1,500 schemes, accounted for 36 percent of our sales. The Gold and Sunshine Coast markets combined make up a similar size in terms of total schemes to Brisbane and constituted 39 percent of our sales for the period.
If we consider two different motel investors, then the comments will be very different. One who is buying to operate themselves as say a “husband and wife” business may be happy with 10 units, three-bedroom residence and no restaurant. The other may not want to operate the business themselves, thereby having it run under management. They may desire 30 units, licenced restaurant, conference rooms/ facilities, and a one-bedroom residence. Each business may be very successful in its own market.
The number of units in a particular motel is not the defining factor for success.
Andrew Morgan, Queensland Tourism and Hospitality Brokers It’s human nature to always want more, as the old saying goes, we always want what we can’t afford
How much is enough?
stock.adobe.com-StockAdobe©
Often if a motel is being purchased to operate under management, a Net Operating Profit of say $100,000 may not be sufficient, due to the manager’s wage being taken out of this profit figure and loan repayments also to be deducted.
Business ownership revolves around profitability (amongst other things) and what profit can be achieved from the number of units on site comes down to how many of those units can be sold each night and at what tariff. The number sitting there on a property is relevant when they are all being sold each night or not enough are being sold. If the property is running at 100 percent occupancy, then room rates need to increase to bring that overheated rate down. Alternatively, if not enough units are being sold then council rates, insurance and other costs are being incurred on non-income producing assets, the opposite issue. So how many units are required for a motel to be successful? One issue lies in the definition of successful. It comes back to what an owner is looking for as a goal for occupancy rates, income, profitability, or lifestyle. An investor buying a motel may wish for a minimum Net Profit of say $100,000 after management costs. This level may be that investor’s definition of the motel being a success. The number of units required to produce that result may be of no real consequence. In contradiction to those who require large numbers of units, I have seen many motels over the years with minimal unit numbers produce very strong levels of income and profit. One example in particular included only nine units yet produced a Net Operating Profit of in excess of $250,000. Impossible some may say but nine units at 90 percent occupancy at $130 per night produced an income of approximately $384,000 and operated on a Net Profit Margin of 64 percent. These are better than industry average figures however it was a difficult yet achievable goal that was reached. Therefore, a generalised comment on how many units are required to be successful or not, is in any case, difficult to agree with.
24 ResortNews | September 2022MANAGEMENT MARKETMOTEL
Why is it that whatever we have, we always want more? “The bigger the better”, people always say.
If a motel is going to be operated under management, then the management wages are going to need to be accounted for. If the profit after management is not enough, then perhaps the size of the property is too small for what the owner is trying to achieve or maybe the business is just not trading well enough at that time and can be improved.
The level of profit remaining after the manager’s wage may not be sufficient to make loan repayments and leave a surplus.
A common Net Operating Profit figure worked on by many motel investors is $200,000 after management wages have been expended with loan repayments yet to be made. The number of units required to achieve that is often a secondary thought, as a minimum level of profit was the driving motivator.
It is very common that we receive enquiries on a particular motel that is for sale and after some discussion the enquirer concedes that as much as they would love to buy that 35-unit motel at $4m, their budget will only stretch as far as $3.5m. The number of units in a motel is important of course, but at the end of the day, budget determines what someone can acquire. Buying on the basis of how many units the motel has, is only realistic if it’s within one’s means. Beyond budgetary constraints, how a motel is to be operated is the answer to the question of how many units is the optimal amount. If a motel is to be owner operated or if it is to be run under management, this may determine how many units are needed to make it a success in the owner’s mind.
Twelve months after buying a new boat I said to myself, “perhaps I should sell it and get a bigger one”. It’s human nature to always want more, as the old saying goes, we always want what we can’t afford.
A tangled web to be sure! All this, dear readers inevitably leads me to the point of this month’s missive. About time you say!
Just make sure you can justify your position. In doing so remember that a truly sustainable business model is worth more than a one-year wonder!
Director, Mike Phipps Finance
25ResortNews | September 2022 MANAGEMENT
As an example, I am not an easy bloke to live with and the ‘managing director’ has a finite level of patience. As such, my demeanour is not sustainable unless the ‘MD’ makes a concerted effort to move to an infinite patience setting. Despite my best efforts to convince her of the benefits of such an arrangement there seems little prospect of success. Put simply, to sustain my relationship with the ‘MD’ I need to make an effort to be a more beautiful and compassionate person. Simple…
For buyers there is a simple solution to ensuring the sustainability of the business.
While adjusted operating costs is an obvious area of discussion, I think the concept of sustainability needs to inform vendor due diligence in all facets of the business. For example, can current vendor practices be perpetuated while maintaining a cordial relationship with a body corporate, unit owners or landlord? In an environment of increasing holding costs and interest rates will investor owners be happy with current letting agents’ fees and commissions? Can advertising levies continue to derive profit in cases where the direct use of those levies cannot be satisfactorily explained? Is it fair to adopt the current body corporate salary in the profit where there’s been a recent increase but ignore proportionate cost increases in delivering caretaking services?
As always, I have decided what to write about this month. That’s pretty much as far as I usually get before writer’s block sets in, and I resort to Google for an appropriate opening quote. It always works but not today!
In my mind sustainability is the concept of maintaining a process, relationship, practice or dynamic which can be reliably replicated over time. Of course, if any such practice diminishes a finite resource, then it’s not sustainable. Simple.
The challenge as always is that vendors want to maximise price. The strategies to do so range from highly professional presentation of the opportunity through to what some might think of as misleading and deceptive conduct. Of course, the best way to maximize price is to maximize net profit, either real or imagined. To this end, in nearly all cases we see vendors argue that their actual operating costs are inflated by practices that are discretionary in nature. Labour costs are the big-ticket item and the easiest to fudge. For example, in management rights the typical two-person team, despite arguments to the contrary, is not an infinite resource. As such the sustainability of the business profit needs to be predicated on the reasonable performance of the managers and the support they will require. When a vendor says that they have staff they don’t need, all they are really saying is that they are trying to sell an unsustainable business model.
MRTHINKING
Take into account all the information provided, adjust the profit and loss statement to reflect your expectations, reflect on your risk appetite and make an offer accordingly. The profit and loss for sale purposes is not engraved in granite and you have every right to disagree.
Sustainability is the concept of maintaining a process, relationship, practice or dynamic which can be reliably replicated over time
Can the goodwill of the body corporate be relied upon for future agreement top ups? Of course, it’s not all bad news. Plenty of these businesses have an upside and provided a buyer can readily assess the opportunity there’s no reason not to factor profit or value uplift into price considerations.
In the management rights and motel industries businesses are bought, sold and valued with reliance on a range of information. In recent times buyers and their advisors have started to pay attention to the sustainability of the business. That is, can current business practices be sustained over time and can the business maintain or improve profitability based on historical levels. In fact, we are starting to see sustainability of net profit creeping into contract conditions. Not before time?
cryMeaninglessSustainability:catchorcalltoarms?MikePhipps,
The word ‘sustainable’ has been hijacked by the woke, the deluded and the thought police and must now only be used in the context of saving the world. All manner of sustainable practices and definitions pop up, mostly meaningless parenting statements and sadly none addressing infinite population growth on a finite ball of spinning rock.
Of course, there are those who argue that a practice can be sustainable even if it relies on a finite resource. That is, the use of the finite resource will be replaced with a different process before the resource runs out. The flaw in this argument is that the ‘different process’ is often an unproven and un-costed concept that fails to account for resource use in its delivery. Those carbon fibre wind turbines aren’t made from fairy dust apparently.
Whilst OTA’s may have a higher commission impact on your booking, they also have huge buying power when it comes to securing a strong online presence. The negative is that your property is displayed alongside your competition on their site.
Don’t underestimate the importance of reviews and review sites. Look after your guests and encourage their positive reviews.
5. Analyse your business and use the data effectively Effective property and channel management software should include extensive analytics to assist with your business strategies. Make informed business decisions based on facts not guesswork.
You gain control over the booking from the outset, both financially and strategically. You can market in a more effective manner to the guest before, during and after their stay. They become a more valuable part of your database for future campaigns and offers having already booked with you directly.
You develop a relationship with the guest right from the time of booking, hence ensuring that their guest experience is optimal. Encourage your guests to return year after year with personalised service and customised promotions. Generate great reviews online that attract additional bookings. Guest loyalty lowers the cost of customer acquisition further and creates a lifetime of value from your marketing efforts.
Three steps from look to book is a great rule of thumb. Your booking form can make or break the deal when it comes to securing a direct booking.
For all the challenges that the pandemic created for the hospitality industry, one positive result has been a marked increase in direct bookings.
4. Market like a professional Use social media effectively. Post online content regularly, both to your social media profiles in addition to your website. Market to your database regularly. Customise offers and keep your guest relationships alive, encouraging them to share offers with their friends and family. Encourage direct bookings with packages offering additional benefits such as late check out or inclusions such as breakfast packs.
Your Channel Manager should have the ability to automatically yield the best price for you whilst you sleep. It should increase or decrease your pricing according to market demand and availability, without the need for you to constantly monitor your pricing. You shouldn’t have to pay additional for this feature either.
Sylvia Johnston, Senior Executive, HiRUM Software Solutions
There are a number of strategies that you should have in play to ensure you attract a high proportion of direct bookings.
3. goodEncouragereviews
Attract more direct bookings
Importantly, you have less chance of losing the booking before it is completed. By booking directly with you, the guest is not exposed to your competitor’s offerings in the same way they are when they book through an OTA.
1. Have a great Booking Engine Having a good website is paramount but ensure it is easy to navigate, accurate, up to date and attractive. Optimise it regularly with relevant content but don’t overdo the images, making it slow to load.
A quality booking form should have as a minimum an OTA Rate Comparison Tool. This shows the current rates OTA’s are advertising to your guests. It gives the consumer the confidence that they are getting the best deal by booking direct with you, without the need to visit other websites to compare best pricing.
26 ResortNews | September 2022MANAGEMENT SOLUTIONSSOFTWARE
The larger volume of Direct Bookings means there is now more direct booking opportunities to vie for.
Analytics should enable you to understand where your guests originate from and to geo-target your market accordingly to maximise the effectiveness of your campaigns. Your software should also provide you with data that enables you to directly compare your competitor’s pricing and performance to ensure that you have the competitive advantage.
Consumers found managing changes to bookings and negotiating cancellations a far easier process when dealing directly with the property than through a third party, and it appears this has created permanent change. In 2019 our records indicate on average only 11.8 percent of bookings were made direct. By comparison in 2021 this figure increased to 21.5 percent. In 2022, the share of direct remains around 19.3 percent, despite the relaxation of borders and the end of lockdowns.
Even more importantly, have an excellent booking platform which is simple to use.
Direct bookings remain the ‘golden egg’ for accommodation properties for many reasons. Their benefits are clear. Your cost of acquisition is greatly reduced compared with a 3rd party booking. These reduced costs naturally result in higher profits.
If you haven’t seen a marked increase in your own direct results you need to revisit your tactics and consider why. Your channel manager and PMS should have an array of tools that will help you achieve more direct bookings, and you should ensure you make use of everything they have to offer.
The positive however is that the ‘Billboard Effect’ means that if a consumer sees a property they like, they often check the property’s own website to see if they can get a better deal. Your goal, once they are on your site, is to ensure they stay there. Get that fish on the hook and keep it there. Reel it in safely and stop it from going back to the giant OTA pond. Your booking form ensures you successfully cook that fish.
Make sure your website is listed directly on Google Hotels. Whilst your property will display regardless, as the OTA’s will display it for you, surely it is better to ensure that consumers have the option to book direct on your booking form. Always ensure your booking form is visible wherever potential guests are looking.
2. Diversify your online distribution
Kelley Rigby, Managing Director, Letts Rebuild rights second family
27ResortNews | September 2022 MANAGEMENT RELATIONSHIPSBUILDING
Isn’t it satisfying to the soul to be a part of an industry where your peers generally want to see you win and succeed? They are there to pass on advice, listen to your troubles and hype you up when needed.
Management rights is all about people and the relationships you build not only in your business but those that are gathered around you. Next time you see an event pop up on your email click that register button and start building a network around you. These relationships may start off purely professional but as time goes on, I can promise they will end up being like family.
If you are new to this industry and are feeling a litt le confined to your four walls (we have all been there) please know that there is a whole community out there to lean on and talk to. If you are a veteran in this industry, thank you for always turning up to events to simply share your knowledge and wisdom to those that are still finding their feet (you might also come for the food and drinks).
I don’t know about you, but I have not experienced this in an industry before and by God it makes me as proud as punch to be a part of it.
Building relationships within the circle of management rights is vital to staying… well sane!
The management
The rightsmanagementindustrywas my fi rst true love (don’t tell my husband) and as the years go on, I seem to fall more and more in love with it. Okay I know it sounds cheesy and a litt le corny, but it is true.
There aren’t many industries where you can walk into a ‘competitors’ business, sit down, have a cuppa (or a wine) chat about your struggles, exchange war stories and gather advice.
This industry isn’t easy and certainly isn’t for everyone, it will continue to throw curve balls and test patience but with the assistance and guidance of those around you, you are bound to succeed.
industry: My
Over the last few months, I have had the privilege of attending and/or being involved in many diff erent industry events/catch ups. These were orchestrated to celebrate our industry and more importantly the individuals within it. Sitt ing back and observing those in the room it warmed my heart to see managers cheering each other on, lawyers from diff erent firms speaking such praise for one another and sales brokers shaking hands in appreciation.
For example, the prescribed duty might be to “coordinate and arrange the maintenance of the fire protection system”. For this prescribed duty the ‘inferred’ duties aren’t specifically detailed but are required to properly discharge this duty.
Accessible dutiesinaccessibleversus&otherclarificationsLyndaKypriadakis, Diverse
• prepare an asset register of the fire safety installations on common property; • ensure the baseline data is complete and available for review on site; • display the occupancy permit; • ensure the evacuation plan is up-to-date and current;
Top 5 most contentious caretaking duties and how to manage them
28 ResortNews | September 2022MANAGEMENT GOVERNANCEGOOD
Where there is a vague or generic schedule of duties in a caretaking agreement, the ‘prescribed’ duties (for instance the duties that are specifically detailed) often contain ‘inferred’ duties (the ‘other’ tasks required to complete the prescribed task).
• obtain the inspection/testservicereport from the service contractor (and any associated defect lists, remedial works quotes and so on); • provide the quotes/defect list(s) to the committee for approval (chase this up within the 28 days mandatory requirement); • ensure defects are fixed within the 28day time frame; • obtain compliance certification on behalf of the body corporate (and send to strata manager and committee); • validate invoices from the services contractor and ensure payment is processed by the committee and strata manager within terms; • save records on site; • deal with any fire regulator site inspections and/or requests for records; • and so on… You can see that one prescribed duty may include a dozen or more inferred duties that all must be undertaken to ensure compliance with the prescribed duty. FMX
Anyone who has ever been party to a caretaking agreement will no doubt have experienced some sort of need to clarify a duty within the schedules, especially if the duties schedules within the agreement are generic in nature, non-specific, or vague.
• obtain the written approval and ensure the committee sign the contract; • coordinate access for the service contractor;
• invite appropriately licensed contractors to quote on the maintenance services; • provide quotes to the committee for approval;
Inferred tasks would include:
A common misconception is ‘mopping’ methodologies,diffare‘scrubbing,versusthesetwocompletelyerentduties,and outcomes
WHS aroundrequirementswhoisaPCBU
3. WHS requirements around safe work at height.
1. Definition of specialist work versus handyperson work.
Management of By-Law breaches
This duty within the caretaking agreement is likely to require the caretaking services provider to “…monitor the observance of the By-Laws and report any persistent offenses…” to the committee or the body corporate for enforcement. It is therefore the caretaker’s duty to maintain a register of By-Law matters to record dates/times and nature of offenses to provide an audit trail of vigilance in this monitoring duty. Some issues arise when the caretaker’s attitude to managing By-Law breaches does not align with the body corporate committee’s attitude, so it’s best for the caretaker to find out (in writing) how vigilant the committee requires the caretaker to be. Some committee’s take a relaxed view of managing By-Laws, whereas others are very attentive and look to the caretaker to provide immaculate records.
Definition of specialist work versus handyperson work. This is where the body corporate committee and the caretaking services provider are unable to agree on what constitutes minor works or handyperson duties. The agreement would have calculated that minor task (handyperson works) are anticipated within the common property and would have allowed some remuneration to cover the cost of delivering these duties, so it is quite right for the body corporate committee to expect handyperson tasks to be delivered. But how do we define a handyperson task? Handyperson or “minor works” tasks are well defined within the ABMA Building Management Code in Chapter 16 and refer to repair works that can be delivered without the need for a specialist trade or contractor’s license.
From a auditorsperformanceperspective, the top five most contentious duties in the caretaking agreement appear to be:
29ResortNews | September 2022 MANAGEMENT
A common misconception is ‘mopping’ versus ‘scrubbing, these are two completely different duties, methodologies, and outcomes. ‘Scrubbing’ is generally undertaken by a specialist contractor using a specialist scrubbing machine on a periodical basis. ‘Scrubbing’ is not a duty unless prescribed as so for instance, the work “scrub” is used in the wording within the duty. Also, emergency cleaning is not a prescribed duty within an agreement. For example, spilled milkshake in the lift or storm/cyclone damage after a severe weather event. These emergency tasks would be considered extra to the duties with additional charges applying.
4. Management of ByLaw breaches.
All caretaking services providers are defined as persons conducting a business or undertaking (PCBU) in accordance with the WHS legislation, and as such, every PCBU is required to have a documented safe system of work (or WHS Compliance Management Plan). The PCBU WHS Plan must be reviewed annually and properly implemented to be conforming. Unlike the caretaker, the body corporate may not identify as a PCBU, but a caretaker is always a PCBU and always has duties under the Act. These WHS duties may not be clearly defined within the caretaking agreement, but they are mandatory under legislation, nonetheless. Chapter 17 of the ABMA Building Management Code can help PCBU’s develop their own WHS Plan.
The WHS Code of Practice for managing the risk of falls in the workplace is a free document readily available on the internet and clearly defines how the PCBU can manage safe work at height in the workplace. The common property is the “workplace” when it comes to caretaking duties. Any work at height that requires specialist fall arrest systems and/or work-in-restraint qualifications would fall to the specialist contractor’s exemption under the caretaking agreement. The WHS Compliance Management Plan will also define what the caretaker can/can’t do in terms of working at height on the common property.
5. Cleaning terminology (eg., mop versus scrub). What seems to be the issue?
WHS ataroundrequirementssafeworkheight
So, what are the top 5 most contentious duties that I see as a performancecaretakingauditor?
2. WHS requirements around who is the PCBU.
Cleaning terminology Sometimes the body corporate committee misinterpret the wording of the duties within the agreement and expect more from the caretaking services provider.
government
“We know visitors, now more than ever, are looking for sustainable tourism experiences,” Ms Keenan said. “We know when regions commit to an ECO Destination Certification process, they are committing to ongoing sustainable practices and continuously improving their actions, the provision of high-quality nature-based experiences in the region, and are focused on improving the environmental, social, cultural and financial outcomes for their local community.”
Minister Hinchcliffe said: “The Eco-certified Tourism Destination Program underpins our government’s vision to become a leader in sustainable tourism and will leverage the growth potential in nature-based tourism experiences to support good jobs and deliver better services.
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Grant funding of $50 000 up to $150 000 will be available to cover eligible activity costs associated with the certification process, with no matched funding requirements from applicants. Program applications opened on August 18 and close on Friday October 7, 2022. Successful applicants are expected to be announced in late 2022. For further information please visit the Department of Tourism, Innovation and Sport website at www.dtis.qld.gov. au.in key global markets.”
Ecotourism Australia Chief Executive Officer Elissa Keenan commended the Queensland Government for its commitment to help more destinations become sustainable.
REPORTTOURISM
Eco-certified tourism destinations state backing
toresilient,lowpositionsustainableofaimsThewithactivitiesgrantcertification.destination-level“Thisprogramoffersfundingupto$150,000fordirectlyassociatedachievingcertification.”destinationcertificationtoprovideawiderangebenefitsincludingimprovedpractices,destinationsascarbonandclimateandberesponsivechangingvisitorneeds.
Minister for Tourism, Innovation and Sport and Minister Assisting the Premier on Olympics and Paralympics Sport and Engagement, The Honourable Stirling Hinchliffe has announced that the Queensland Government will be investing $1 million to support the State’s position as a leader in sustainable tourism by supporting our tourism destinations to gain globally recognised certification.
He said the Eco-certified Tourism Destination Program will provide grants to councils and regional and local tourism organisations to support attainment of either Ecotourism Australia or EarthCheck
Mr Stewart Moore, Chief Executive Officer, EarthCheck said: “Certification helps bring all your resources, efforts and data together to measure and track your destination’s health, promote continuous improvement and deliver better outcomes for your residents and visitors.”
“The program is part of the Palaszczuk Government’s response to the independent Tourism Industry Reference Panel’s final Action Plan titled Towards 2032: Reshaping Queensland’s Visitor Economy to welcome the world “In the Towards 2032 plan, the Panel recommended investing now in sustainability measures to avoid the need for expensive intervention and regulation later. It also meets a growing customer demand for low impact travel which is fast becoming an expectation.”
“Most importantly, it supports actions to achieve a Climate Positive Olympics in 2032 and the target of net zero emissions by 2050.
Minister Hinchliffe said there was growing momentum around Australia for tourism destinations to demonstrate their commitment to sustainability. “Port Douglas-Daintree was Australia’s first location to obtain ECO certificationDestinationandanumber of other Queensland destinations including the Scenic Rim, Bundaberg, Cassowary Coast and Townsville are working through the process.”
32 ResortNews | September 2022TOURISM
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Grants are to be given to councils and regional and local tourism organisations who strive to attain Ecotourism Australia or certification.destination-levelEarthCheck
Daniel Gschwind is a gift for Griffith tourism
The highly respected Mr Gschwind was the CEO of Queensland Tourism Industry Council for 21 years before passing on the reigns earlier this year. On announcing the appointment, GIFT Director Associate Professor Sarah Gardiner said: “We are enormously excited to welcome Daniel on board. “Daniel played such a leadership role guiding the tourism industry through the pandemic and there are a lot of lessons to learn from him in terms of building resilience for future challenges.
33ResortNews | September 2022 TOURISM
“He will also help us understand how to create legacies tied to the 2032 Olympic and Paralympic Games.”
“He has so much experience in the tourism industry and we look forward to him sharing his wisdom with the next generation of tourism researchers.”
Daniel Gschwind
SUNSHINE COAST & QUEENSLAND WIDE Damian Quinn (07) 5443 www.simpsonquinn.com.au5266 • Commercial & Business Law • Property Law • Litigation & Dispute Resolution • Retirement Villages • Wills & Estate Planning • Body Corporate One of the Sunshine Coast’s most experienced firms in on-site management rights transactions. ManagementRightsTransactions Damian Quinn
Queensland ProfessorTourismGriffiGschwindheavyweighttourismDanielhasjoinedthInstitutefor(GIFT)asaofPractice.
Gschwind’s impressive CV also includes six years as Australian Tourism Industry Council Deputy Chair, seven years as Australian Tourism Awards Chair, current board member of Tourism Whitsundays, 15 years as a Surf Life Saving Queensland Vice Patron and he has been the Great Barrier Reef Marine Park Authority’s tourism reef advisory committee chair since January 2020.
“Daniel is going to help us make sure our research remains practically relevant, and also further strengthen our relationships with the industry, including government, business and other associations,” she said.
Griffith’s Hospitality and Tourism Management subjects recently ranked number one in Australia and third globally in the prestigious Shanghai Ranking’s Global Ranking of Academic Subjects 2022 Associate Professor Gardiner said Gschwind’s involvement in GIFT would improve connectivity between the academic and practical worlds.
Last month ARAMA’s TOP Awards made for a phenomenal night with close to 300 guests sitting down to a gala dinner at the Brisbane City Hall, a beautiful location that looked absolutely magnificent on the night.
EVENTS
34 ResortNews | September 2022EVENTS & APPOINTMENTS
ARAMA TOP Awards 2022
35ResortNews | September 2022 EVENTS & APPOINTMENTS BRANCH EVENT TITLE DATE TIME LOCATION REGISTRATION Gold Coast Trades & Services EXPO Tuesday, 13 September 2022 6pm Southport Sharks Open Sunshine Coast Trades & Services EXPO Wednesday, 14 September 2022 6pm Maroochy Surf Club Open Brisbane Trades & Services EXPO Thursday, 15 September 2022 6pm Brisbane Broncos Open ALL Webinar - The Management Rights Report Wednesday, 21 September 2022 11am ONLINE OPEN Byron Bay Training & Education CPD Tuesday, 11 October 2022 6pm Byron Bay Services Club Open Gold Coast Gold Coast Roadshow Wednesday, 12 October 2022 6pm TBA OPENING SOON Sunshine Coast Sunshine Coast Roadshow Thursday, 13 October 2022 6pm TBA OPENING SOON Airlie Beach Airlie Beach Roadshow Tuesday, 18 October 2022 6pm TBA OPENING SOON Cairns Drop in for Drinks Monday, 24 October 2022 6pm TBA OPENING SOON Port Douglas Port Douglas Roadshow Tuesday, 25 October 2022 6pm TBA OPENING SOON ALL AGM and Members Forum Thursday, 27 October 2022 10:30am Riverside Hotel, Brisbane Open ALL AGM and Members Forum Thursday, 27 October 2022 10:30am Online Open ALL MRITP Friday, 28 October 2022 8:30 am to 4:00 pm Riverside Hotel, Brisbane Open Brisbane Brisbane Roadshow Tuesday, 15 November 2022 6pm TBA OPENING SOON ALL Webinar - Roadshow Wrap-up Wednesday, 23 November 2022 11am ONLINE OPENING SOON ALL MRITP Friday, 2 December 2022 8.30am-4pm Riverside Hotel, Brisbane OPEN Sunshine Coast Christmas Night Social Tuesday, 6 December 2022 6pm TBA OPENING SOON Gold Coast Christmas Night Social Wednesday, 7 December 2022 6pm Hota, Surfers Paradise OPENING SOON Brisbane Christmas Night Social Tuesday, 13 December 2022 6pm TBA OPENING SOON 2022 ARAMA INDUSTRY EVENTS CALENDAR For registration and/or event information please contact us on 1300 ARAMA Q (1300 27 26 27), email national@arama.com.au or visit: https://www.arama.com.au/
Organiser Marisa Millane said: “I could not have done this event without Sam Steel and his team from Resly, Sam had such a big vision for the evening, and it was nothing less than fabulous to see it come into fruition.
A big Thank You to everyone that attended and contributed to the evening making it everything that it was.
“It was wonderful to see us an industry giveback to our two chosen charities - Move for Lexi and The Tara Brown Foundation. On the evening we raised $12,000.00.
36 ResortNews | September 2022EVENTS & APPOINTMENTS What certainlyTheManagement?WomenaboutInBestofTourismAwards2022wasanightofcelebration.
“We are already looking forward to the next one in 2023!”
Congratulations to all our winners of the night. And big Thank you to our sponsors of the evening Freedom Internet, Holmans, Booking.com, Resly, Hynes Legal, Switch hotel solutions, RAAS property group, L&M Gold Star.
What a night and what an industry, there was an abundance of joy that carried throughout the evening.
This event was put on to acknowledge the struggles and hardships that rippled through our community due to COVID-19 and finally witnessing the bright light at the end of the tunnel.
37ResortNews | September 2022 EVENTS & APPOINTMENTS
The 500-room hotel will be joined to the residential tower via a unique Sky Lounge on Level 46, featuring a glass floor oculus that overlooks the UNESCO world heritage listed Royal Exhibition Building and its surrounding Carlton Gardens.
New seven-storey residential development headed for Indooroopilly
According to Multiplex, the site had more than 400 workers daily at its peak with over 2 million hours worked to date.
Multiplex tops out iconic Sapphire by the Garden Towers
“We are delighted to have reached this milestone, a testament to the collaboration and determination of our team and subcontractors. Constructing two towers simultaneously takes exceptional planning and management, especially when facing construction and engineering complexities like the iconic sky bridge, 46-storeys in the air,” said Graham Cottam, Regional Managing Director of Multiplex.
Multiplex has completed several new residential projects in Melbourne in recent years, including the recent ‘wave-like’ Premier Tower and the Southern Hemisphere’s highest residences in 100-storey Australia 108.
Distinctive features of the Sapphire by the Gardens apartment tower include an activated podium with overhanging plants over terraced podiums integrated into the façade. Premium resident amenities across two floors include a heated infinity edge swimming pool, gymnasium, sauna, Sky Lounge, a cinema, karaoke room, chef’s kitchen and lounge with fireplace.
A new surf park village proposed for the Gold Coast
Shangri-La Melbourne will offer a variety of guestrooms, including family rooms, Horizon Club guestrooms, Premier and Presidential Suites, as well as a range of bars and restaurants with alfresco dining, expansive conference facilities, a spa, gym and wellness centre and an indoor heated pool.
Northern Gold Coast: Plans unveiled for a private hospital and health precinct
A development application has been lodged by Parkwood Golf Club for a large $300 million ‘Integrated Surf Park Village’ located at the Parkwood International Golf Course on the Gold Coast.
A new development application has been lodged for a seven-storey residential development in Indooroopilly. The project will comprise of 133 dwellings across two seven story buildings as well as a row of terrace houses. According to the developer TRK Property Group, the apartments and terrace houses will be aimed at young families who are keen to move into the area and local residents seeking to downsize.
The unique Skybridge design posed construction challenges, with Multiplex creating a temporary protection deck beneath it to enable safe working access. This deck cantilevered out from the building and sat between two large trusses. The first residents are expected to move into apartments in October 2022 with construction of the precinct on track for completion early in 2023. The hotel will welcome its first guests in 2024.
Joint Venture partners Keylin and Kinstone Groups have lodged a development application with Gold Coast City Council to deliver a private hospital and comprehensive health precinct at Foxwell Coomera, situated within the Coomera Town Centre Precinct. Site works are well underway to deliver roads and infrastructure to the location of the proposed private hospital, which will provide 400 beds across two stages. Keylin Group Managing Director Louis Cheung said preferred operators have been shortlisted for the delivery of the 60,000sqm state-of-the-art hospital, which forms the foundation for Foxwell Coomera’s $1.5B master plan.
“The completion of Sapphire by the Gardens and the ShangriLa will mark our fifth significant development within Melbourne. We are thrilled to see this iconic development come to life and stimulate thousands of local jobs during and after construction,” said Datuk Choong Kai Wai, President and CEO of S P Setia.
The application details plans for a unique integrated surf park village with the introduction of a large ‘endless surf’ wave pool, surf HQ building, hotel, wellness & education hub, a micro-brewery, office, retail, apartments and villas as well as upgraded club facilities which are currently used by the Gold Coast Titans.
Premier global construction company Multiplex has reached a major construction milestone on S P Setia’s Sapphire by the Gardens development, ‘topping out’ both high-rise towers in the mixed-use precinct in Melbourne’s CBD. Located on the corner of Exhibition and La Trobe Streets and designed by Fender Katsalidis in collaboration with Cox Architecture, the towers stand at an impressive 232 and 220 metres above street level respectively. The project comprises a 62-level 5-star flagship ShangriLa Hotel and 60-level residential tower housing 325 luxury apartments.
38 ResortNews | September 2022DEVELOPMENTS NEWSDEVELOPMENT
Sapphire by the Gardens
With a striking façade featuring champagne gold fins, the Hotel will also deliver the largest ballroom space in Melbourne’s CBD, graced with elegant six-metre-high ceilings.
The project is forecast to generate over 1,000 jobs including permanent roles within the Hotel on completion.
www.accomproperties.com.au LISTINGS FROM ALL THE LEADING BROKERS IN AUSTRALIA, NEW ZEALAND AND THE PACIFIC ISLANDS Ward Commercial AUSTRALIAN BROKERS NEW ZEALAND & PACIFIC ISLAND OVERBROKERS 1,000 TOURISM & HOSPITALITY BUSINESS BROKERS
Ms Daniel says purchasers are seeking high-net properties in prime tourism locations with a minimum ROI of 12 to 14 per cent.
Grampians Edge Caravan Park, Dadswells Bridge NEW SPOTLIGHTSMANAGER Jen and Steve handing over to the new owners Noosa Quays, Noosa Heads
“Where is Dadswell Bridge you may ask? Well it is famous for the Big Koala, and located nearby the Grampians National Park. Owners Jen and Steve have transformed this bush camp caravan park into an idyllic retreat, turning the property around to it’s current popular tourist getaway. After being on the market with several agents, the owners chose Tourism Brokers to list their pride and joy. Soon after, the vendors received a full price offer and now the new owners are ready to take the bush camp to a whole new level – watch this space. An excellent outcome for both parties thanks to Sales Executive Andrew Cronin of Tourism Brokers.”
MANAGEMENT RIGHTS
Monto Caravan & Cabin Park D&M Jensen Invest P/L Monto TB Barrier Reef Motel Atidhi Services P/L Innisfail RB
Currajah Hotel J. McGuigan & K. Wilkes Wangan TB
Biloela Palms Motor Inn Joyran P/L Biloela RB New South Wales Silver Oaks Motel Vyas Gilgandra CRE Bali Hi Motel Croxford Tuncurry CRE Highway Motor Inn Wu & Luo Taree CRE
The Astor Apartments Max Ding & Jean Yang Spring Hill RB
Ellen Hotel Selrow P/L Port Pirie RB
Brokers Glenn Millar and Chenoa Daniel sold 26 Management Rights – averaging one every two weeks – and the Sunshine Coast surge shows no signs of waning.
Mr Millar says Management Rights have always been considered a relatively safe asset class.
40 ResortNews | September 2022PROPERTY Note: Agent/Broker involved in the sale is listed last.
Ceduna Motel East-West Hector (Shuang Xu) Xu or nominee Ceduna RB (Freehold Passive Investment) Ceduna Motel East-West Hector (Shuang Xu) Xu or nominee Ceduna RB (Leasehold)
“Business-only rights are always in high demand due to the massive growth in real estate, making some of the smaller properties much harder to sell,” she says.
The trusted source for buying Management Rights, Motels and Caravan Parks from all the leading brokers.
Sunshine Coast / Wide Bay / Fraser Coast Water Gallery Brock & Meagan Monk Twin Waters MRS Oceanus Seanna Bokarina P/L Bokarina MRS Noosa Quays Anthony & Shauna Jenkins Noosa Heads RB Noosa Pacific Holiday Apartments Nopac P/L Noosa Heads RB Beach on Sixth Skyla Properties P/L Maroochydore RB Bay Village Hervey Bay Shephard Hervey Bay CRE Pavillions on 1770 Agnes Waters Management P/L Agnes Waters RB Far North Queensland Reef Gateway Apartments Goh Global Asset Management P/L Cairns North RB MOTELS & OTHER Queensland Killarney Hotel Motel Mills Killarney CRE Pacific Coast Motel Sullivan Labrador CRE Old Maleny Road Hughes Landsborough CRE King Reef Resort Eberhard Kurramine Beach CRE Queensport Tavern Toomey Hemmant CRE Beerwah Motor Lodge Leeonie and Raymond Je ery Beerwah WCH
Sales Report profiayearthesalesManagementupteamSunshineResortBrokersCoasthasracked$44millioninRights’intheareainpastfinancialalone,includingnumberofhigh-lerecorddeals.
South Australia
Shearing Shed Motor Inn G&L Gordon Dubbo TB Quest Mascot Reasat & Romel Reza Mascot RB
Agent - KEY: RMS - Resort Management Sales; CBMR - Calvin Bailey Management Rights; CRE - CRE Brokers; MRS - MR Sales; QTHB - Queensland Tourism & Hospitality Brokers; RB - ResortBrokers; RS - Resort Sales; TOTom Offermann; TB - Tourism Brokers; TMR - Think Management Rights; SC - Stratacorp; WCH - Ward Commercial Hotels. * In conjunction
Gold Coast Sanctuary Lake Apartments Jon & Leah Sride Currumbin RB Markham Court G & K Hislop Broadbeach RB Brisbane
BIG4 Ballina Headlands Holiday Park Tasman Ballina CRE Golf Club Motor Inn Khalid Wingham CRE Country Roads Motor Inn M. Han & J. Shao Tooleybuc TB
The Ridge Apartment Hotel Eastwell Management Rights P/L Spring Hill RB
Citrus Valley Motel Jasmeet Neelon or Nominee Renmark RB
Leichhardt Motor Inn C. Cao Toowoomba TB
“High-end rights have been in strong demand due to the ongoing growth of the tourism sector, especially on the Sunshine Coast. The Hastings Street Rights was under offer within 24 hours of listing and never hit the market. Return on Investment ranges from 12-14 per cent,” he says.
Sunshine Coast’s No. 1 Brokers when results count ResortBrokers Sunshine Coast Team Settled an average of one Management Rights business every 14 days in Chenoa Daniel ARAMA Broker of the Year 0403 143 chenoa@resortbrokers.com.au151 Glenn Millar Broker, Sunshine Coast 0412 277 Forglenn@resortbrokers.com.au804anobligation-freeappraisal or simply to chat about the market, give us a call or drop us an email And we have already settled 5 more in the ® The Beach Retreat The Parks Coolum Beach, QLD Sippy Downs, QLD Pacific Beach Resort Mooloolaba, QLD Salt on Kings Island Waters Caloundra, QLD Birtinya, QLD Mariners Resort Edgewater Horton Apartments Caloundra, QLD Kawana, QLD Maroochydore, QLD Bluewater Point Resort Revive Oceanside Minyama, QLD Birtinya, QLD On The Beach Noosa, QLD Seanna Residences Bokarina, QLD Aquarius Birtinya, QLD Curve Birtinya, QLD Noosa Crest Noosa Heads, QLD Kardinia Wurtulla, QLD Ivory Palms Resort Noosaville, QLD Verve on Cotton Tree Camargue ApartmentsBeachfront Maroochydore, QLD Maroochydore, QLD Northwind Apartments Maison NoosaEssen Pacific Mooloolaba, QLD Noosa Heads, QLD Brightwater, QLD Noosaville, QLD The Plaza Central Apartments Noosa Quays Maroochydore, QLD Noosa Heads, QLD BeachAffina on Sixth Aegean Brightwater, Maroochydore,QLDQLD Brightwater, QLD LuxAqiv Brightwater, QLD Brightwater, QLD ®
Exclusive: Permanent Letting Working together, working for you. This Months New www.mrsales.com.auListings...|1300 928 556 | info@mrsales.com.au Caloundra QLD Price: $3,150,000 Nett: $461,000 ID: 9058 MR Sales Carrara QLD Price: $897,000 Nett: $81,500 ID: 9063 Sunshine Coast QLD Business Only Opportunity ID: 8720 Contact Richard richard@mrsales.com.au0477O’Connell013006 Exclusive: Iconic Landmark O ers over $425,000 Nett: $196,545 Contact Gerard Dixon 0433 617 gerarddixon@mrsales.com.au515 Contact Mark McKay 0428 865 markmckay@mrsales.com.au120 Surfers Paradise QLD Exclusive: Permanent MR IconID: 9062 Price: $2,135,000 Nett: $273,000 Contact Warren Oliver 0416 216 warren@mrsales.com.au625
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If you’re experienced in real estate administration or the sale of management rights, apply today by sending your CV to Craig Cornish at c.cornish@rwsp.net. love to have you on
HeadCraigraywhitesurfersparadisegroup.com.auboard.CornishofManagementRightsSales 0414 897 c.cornish@rwsp.net256
Industry Heavyweight Joins Management Rights Field Do you want to be a part of our team of rising stars?
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For Sale Ray White Surfers Paradise Group For more information on these management rights opportunities, contact Craig Cornish today. Craig Cornish Head of Management Rights Sales 0414 897 c.cornish@rwsp.net256 raywhitesurfersparadisegroup.com.au Surfers Paradise QLD Chevron Island QLD For Sale by Expressions of Interest $715,000 including residence and business Eagleby QLD Award-Winning Broadwater Beauty Southport QLD Entry-level management rights opportunity Offers of $490,000 includes residence and business $925,000 including residence and business Surfers Paradise QLD Surfers Paradise QLD 60 keys projected in the letting pool Register your interest now with the agent $3,395,000 including residence and business
Ian and Maree Smith are managing splendidly Maree and Ian Smith
46 ResortNews | September 2022PROFILE P R O U D M E M B E R S O F H o l i d a y C o m p l e x e s C o r p o r a t e C o m p l e x e s P e r m a n e n t C o m p l e x e s S t u d e n t A c c o m m o d a t i o n s M a n a g e r U n i t V a l u a t i o n s & R i g h t s T i m e i n M o t i o n R e p o r t s & R e n t R o l l s B o d y C o r p o r a t e S a l a r y M a r k e t A s s e s s m e n t s A U S T R A L I A N V A L U E R S S P E C I A L I S E I N : 1 8 0 0 6 6 4 0 9 4 q u o t e s @ a u s t r a l i a n v a l u e r s . c o m . a u w w w . a u s t r a l i a n v a l u e r s . c o m . a u M A N A G E M E N T & L E T T I N G R I G H T S V A L U A T I O N S P E C I A L I S T S
By Grantlee Kieza, Industry Reporter
Mr Phipps and his business partner in impeccablemanagementa“Mareeangiginpropertiesbeen“Ianbeganoutweresaysgood“IantheIanassisted(TMC),ManagementTransactionConsultantsTonyRossiterasyndicateforandMareetopurchasemanagementrights.andMareearebloodymanagers,”MrPhippsbluntly,addingthattheretwothingsthatstoodimmediatelywhenhefirstnegotiatingwiththem.wasatradieandMareehadapropertymanagerof100foraboutiqueagencyDarwin.IfyoucancrackthatinDarwin,thenyoucanrunapartmentcomplexanywhere.hadcomeoutofchallengingpropertyrolewithreferences.
Mike Phipps has been involved in the business for more than 30 years and says Ian and Maree Smith would have to be the best managers “pound for pound” in thatmanagementpermanentrightshe’severmet.
Ian and Maree took out this year’s ARAMA TOP Award at a gala function at Brisbane City Hall in July as Resident Managers of The Year (Long Stay). The pair oversee 150 units at the neighbouring Hidden Grove and Vista on Brays complexes at Griffin, north of Brisbane.
“My sister and brother-in-law were in management rights, and we used to visit them at Mango Hill. We were very interested in the business and asked a lot of questions.
Specialising in management rights and otherbusinessaccommodationsyndicates
Work with the firm that delivers nationwide, industry leading transactional services and advice across all accommodation based business types. Helping hundreds of resident managers and operators each year to acquire, sell, protect and grow their business.
Chartered Accountants & Specialist Advisors to the Accommodation Sector Since 1993.
“I obtained a Queensland licence because I knew we would end up back here, and I studied for the full licence through REIQ to cover all bases. It took me 10 months but within a couple of weeks I had a job with Habitat Real Estate in Darwin.”
“I started work four days after the cyclone hit,” she said.
Phone: 07 5562 6111 After Hours: 0412 092 969 www.pevylawyers.com.au
“The combination of this husband-and-wife team was perfect for management rights because you’ve got a handson guy who can look after maintenance and make some money doing up the units for owners, and you’ve got a woman who can run the front counter. And Maree is a lady with the very rare ability to have what might be a very confrontational conversation about things like rent rises or tenants’ conduct and do it in a way where at the end they almost thank her for it.”
47ResortNews | September 2022 PROFILE Peter Brewer B. Bus. Acc.,FCA, CTA t: 07 5449 9992 e: peter@pbbconsult.com.au w: www.pbbconsult.com.au
Ian and Maree are the parents of two boys, Zack, 17, and Riley, 15. They were travelling around Australia following oil and gas work, an industry in which Ian worked as a construction supervisor.
“Darwin had a huge rental shortage at the time, and I decided to get my real estate licence with the thought of eventually going into management rights.
“I was supposed to manage 50 properties and be coached, but the property manager I was to work with had quit and I was given 90 properties. Talk about being thrown in at the deep end!
Trent and the Pevy Lawyers team are proud of their appointment as legal advisors to Ian and Maree and their partners, and congratulate them on their recognition at the ARAMA Awards
Ian had a bad accident in 2014 and suffered a serious leg injury.
Well deserved and congratulations to Ian and Maree for their recent award.
“We knew the longevity in oil and gas wasn’t going to be there,” Maree told Resort News
“At the time we were in Darwin where Ian was working on the Ichthys gas project. I was working in merchandising a couple of days a week because the kids were quite young and still at school.
Maree gave two-weeks’ notice from her merchandising job before she started in real estate and during that fortnight the devastating Cyclone Marcus of 2018 ravaged Darwin.
Ian and Maree worked with TMC to secure management rights at the two properties.
“Because it was such a large business, we had to set up a partnership and Mike and Tony Rossiter from Holmans Accountants helped to form a partnership along with the vendors of the property. Mike decided he liked the look of the business as well, so he and Paul Grant also became partners.”
“We started as the new managers on March 5, 2020.”
TMC brought together all the professional services needed for the transaction to proceed.
There are 60 units at Vista on Brays, and Ian and Maree manage 58 of those. There are 90 units at nearby Hidden Grove, and they manage 85 of them.
“We had our stuff together and ready from day one which made the whole process run very smoothly.
“Australian Valuers are a highly regarded source of market data and provided a great sounding board in the initial stages of the transaction. Valuations are informed by a diverse and sometimes elusive range of information and Australian Valuers always manage to get to the core of the process. In doing so they are always open to discussion and debate regarding valuation outcomes.”
“They had 150 properties to manage,” Maree said. “By this stage we had found Hidden Grove and Vista on Brays through my brother-in-law. “We were in the middle of purchasing when I took on the job at Lakes Entrance. We stayed for another three months and then we came to Brisbane and got the kids settled into school.
Accountants to accommodationtheindustry.
“My brother-in-law had recommended that we contact Mike Phipps to help find a management rights business. We spoke to Mike and Paul Grant (the senior broker at Mike Phipps Finance) to see if it was suitable for us.
Call 07 5430 7600 or visit holmans.com.au
“We have great bank finance with Suncorp,” Mr Phipps said. “We use Pevy Lawyers, and Peter Brewer, a very trusted accountant from pbbConsult, did the verification.
Ian and Maree literally have all their ducks in a row when it comes to organising their business.
Ian and Maree with their boys, Zack and Riley
“I didn’t know anything about the software, so I basically started calling tenants and just writing down all the damage their properties had suffered.
COVID hit only a couple of weeks after they arrived as new managers and it was difficult to meet their tenants.
48 ResortNews | September 2022PROFILE
The cyclone was so destructive – one of the most destructive since Cyclone Tracey.” After Ian’s job on the gas project in Darwin finished, the family moved to Lakes Entrance in Victoria with Ian taking another gas project job in nearby Orbost. Three months before they were due to leave there, the real estate agency the Smiths were renting through, Elders in Lakes Entrance, asked Maree to work for them because their property manager had resigned at the last minute.
“We thought the size of the complex and the net profit was what we were looking for, so that Ian and I could both be employed in the business,” Maree said.
“We have about 150 units in total because we also look after a duplex at Kallangur and a house at Bellmere, and we are in the middle of taking 10 off the plan at Kallangur as well,” Maree said.
Mike Phipps said the couple are so diligent when it comes to promoting harmony and fun at the units they manage that at Easter time and Christmas. Riley helps at night as the Easter Bunny and “puts great big rabbit footprints around the place using a template and baby powder.” Zack has dressed as Santa Claus the last two years dancing through the complexes as Santa Claus handing out lollies to the children.
Maree said the couple felt fortunate in having good business partners who let them run their unit complexes with minimal interference.
“People come to us and say, ‘I’ve got some money and I’d really like to put it into management rights’, or we might have clients buying management rights and they’re a little short of cash and need investors,” Mr Phipps said.
Mike Phipps said his business TMC had helped organise the management of about 50 syndicates to run properties.
Ian and Maree set up a lot of community engagement for their tenants including an internal business referral unit so that anyone with a trade or skill is available to help their neighbours in the complex.
The prizes for the raffle include Westfield vouchers, photography packages, toys, remote control cars and watches.
The tenants bring them back to the office for a raffle ticket and that allows Ian and Maree to meet many of the tenants in a relaxed atmosphere and listen to any concerns they have.
After the lockdowns ended though, they decided to promote a real sense of togetherness.
49ResortNews | September 2022 PROFILE Talk to some one who understands your business. Suncorp Metway Ltd ABN 66 010 831 722 AFSL No 229882 ( Suncorp Bank”) 22527 22527 25/01/19 A Tanveer Khan Management Rights Specialist Gold Coast 0438 628 840 Amanda Norling Management Rights Specialist Brisbane 0459 800 461 Michael Mjaskalo Management Rights Specialist Sunshine Coast 0448 421 975 Michael Mjaskalo Management Rights Specialist North Queensland 0448 421 975
Maree says their work has been helped by a good working relationship with both of their committees and by Mathew Anderson from the RAAS group, who has helped to sell a number of units to investors to maintain their letting pool. “Ian and I love the job,” Maree said, “I especially love it when you can put someone into a home and they’re a good tenant. We had some who weren’t so good when we moved in, but we’ve sorted all that out. “After years of different jobs, I’ve really found something that I love, so I don’t mind spending extra time in the office or extra time doing other things.”
One of their most satisfying innovations was a “hidden duck” competition designed to get tenants out and about after lockdowns and talking to each other. The couple hide 250 yellow plastic ducks throughout the gardens and common areas for the kids and adults to find.
“They’re abiding by the principals of the ‘Triangle of Management’. They get on well with their body corporate committee and the body corporate manager and they go the extra mile to satisfy their lot owners and their tenants.
The process needs to be transparent, and everyone involved needs to be able to make fully informed decisions.
“What Ian and Maree realise,” Mr Rawnsley said, “is that they are in a service business, and they are obviously providing great service for their tenants, unit owners and committees.
Wendy is a former property lawyer who was involved in the management of a company title building in Brisbane for three years. Anthony says he “retired hurt” from his business as an accountant. “The air is cleaner here than in Brisbane, so it’s better for my health,” Anthony said.
Mr Phipps said every once in a while, the combination of what he considered a great management team and a great property came together and he puts some of his own money into it.
“I’m picky because I’m very risk averse,” he said. “But Ian and Maree are great managers and I’m extremely bullish about the north side of Brisbane.
By Grantlee Kieza, Industry Reporter
• The actual size of the scheme and the growth in the letting pool during a highly competitive time.
ARAMA CEO Trevor Rawnsley said Ian and Maree finished in front of a stellar field for this year’s TOP award which was judged on:
“Or they think they’ve got a really good skill set and feel they could run a big complex but don’t have the financial firepower to buy one.
• How well they got on with the committee and other lot owners including those who were owner occupiers.
They managementbought rights after seeing advertisementan on Instagram and they are now making every post a winner at the luxurious GoldHeadsbeautifulApartmentsBeachfrontCashelmaraatBurleighontheCoast.
InstagramApartments makesevery post a winnerat Cashelmara
“TMC manages the process of putting it together with some investors to make it happen.”
50 ResortNews | September 2022PROFILE
“People are beating a path to our door because TMC has a reputation for conservatism. We’ve got a super low risk attitude because we understand that people are putting serious money into these transactions.
• What outside interests they might have to provide for the local community and create work-life balance.
Wendy and Anthony Richardson are newcomers to management rights but coming from a background of accountancy and property law they knew they were on a real winner with the Thebeachside50-apartmentcomplex.long-timeBrisbanites took over the complex last November and are loving their new roles.
“A really great manager is the key to the whole thing and my definition for a great manager is that I never have to ring them.”
Maree told Resort News that ARAMA’s online resources had been a tremendous help to their business, while their regular functions and get-togethers had been essential to interact with other managers and hear about different working strategies.
Cashelmara Beachfront
• Did they enjoy their role and did it provide fulfilment.
That’s what he did when he met Ian and Maree.
“Everyone benefits from their good management.”
All at Fixed Fees
– Wendy & Anthony Richardson, Cashelmara Beachfront Apartments
“Our body corporate has been very supportive of us and hopefully we’ve been very supportive of them. You must remember that as managers you’re working for the body corporate and you’re working for the owners in your letting pool.
Leaders and experts in Management Rights Congratulations Wendy and Anthony. Flood Legal are proud to partner with you as your trusted legal advisors. Thank you for your kind words.
andBuyingSelling orAgreementsVariations AdviceGeneral
Cashelmara is in the middle between the two headlands but still an easy walk to take advantage of the nightlife and the fine dining at either end of The Esplanade. “It’s a great spot.”
“We love being able to step out and talk to people.
Cashelmara has 50 units. A third are held by resident owners, a third are lockups and a third are in the holiday letting pool. “We thought it was a manageable property for us to start with, as first-timers,” Wendy said. “Our unit looks over the gorgeous pool/spa, the stunning ocean and the grounds. The property has a wonderful barbecue area, tennis court and really large grassy areas for kids to run around. “It is a lovely holiday destination for people and so close to the beach, very family friendly.
“This is a niche area of law, and we were delighted to be guided through it by Sharon and her Flood Legal Team. Their wealth of experience meant that we, at all times, felt comfortable in making the decisions we needed to from a platform of expertise. Can’t recommend highly enough and look forward to continuing to work with Flood Legal into the future.”
“And the numbers for Cashelmara stacked up.” Wendy said she and Anthony were intrigued from the moment they saw the Instagram ad. “Not everyone buys their management rights through Instagram, but we did,” Wendy laughed.
“I think anyone coming into management rights really must look closely at what the searches say and what the minutes of the body corporate meetings say. They need to realise what sort of building they are entering.
Cashelmara has a wonderful community feel. You’re never too far from being able to have a chat with someone.”
51ResortNews | September 2022 PROFILE Contact Sharon Flood, Director | M 0459 070 871 | T 02 6674 5118 | E sharon.flood@floodlegal.com.au | W www.floodlegal.com.au
“We started coming to Burleigh Heads with our children 23 years ago and our own parents used to take us to Burleigh as well.
“From the start we were impressed with a lot of the things that were going on here,” Wendy said. “It means that as building managers we are much busier than a lot of managers when they enter a building because the body corporate is so active. “But we also see that as a good thing.
Wendy and Anthony said one of the big selling points for the property was a proactive body corporate.
Wendy and Anthony Richardson
“Anthony and I knew of Cashelmara. We hadn’t stayed here before, but we’d always wanted to manage a property, so we signed up. “The numbers showed it was a strong business and the timing was right too. “We thought that with the Olympic Games coming up, it could be a good time to buy. We obviously had professionals review everything and all the advice that came back was that it was a good, solid business.”
Coming off the back of COVID, there has been a great rush of visitors all year. “We took over at the end of November last year and in January, they opened the borders,” Wendy explained. “And it was dynamite. We’ve been very lucky.” After agreeing to buy Cashelmara, Wendy had to make a concerted rush to get her real estate licence, and to quickly get up to speed with all the new regulations. It was a challenge, but the rewards are many. The couple directly employ their cleaners and do all they can to make sure it is a good working environment for them and that they are paid fairly in accordance with the legislation. “We’re enjoying managing Cashelmara very much,” Wendy said. “Management rights is a great business. It has a lot of moving parts so if you’re into good puzzles it’s great to figure out how it all fits.
“You have to make sure that you service both those clients well.”
Accountants to accommodationtheindustry.
“Like any new business, you have to put in the hours to learn the new skills,” she said.
“You have to be prepared to understand that it can be tough at the start but as you get more familiar with everything it will smooth out.”
“Some of our guests have been coming for 17 years or more,” Wendy said.
Wendy said she and Anthony found running Cashelmara tiring “in those initial months” with the rush of guests.
52 ResortNews | September 2022PROFILE
“The only real time that you can go on holiday is in those winter months when things are supposedly a bit quieter. We engaged some relief managers and they came and stayed for two weeks while we went down to the northern rivers of NSW and then up to Noosa.
“The relief managers were very good. We introduced them to the body corporate so that everyone knew what was happening up front and it all seemed to go well.”
Wendy and Anthony found themselves so snowed under at the beginning of the tenure when borders were reopened that they needed help. They employed a receptionist for three or four days a week and she has been a wonderful asset to their team.
Call 07 5430 7600 or visit holmans.com.au
Cashelmara enjoys occupancy levels of 90 percent, with many long-term return visitors.
“Everyone told us that in this type of industry you have to take a break, or you’ll burn out,” Wendy said.
“It makes everyone a lot happier.”
“We put them up on our website and give them their own individual names so that guests can choose their unit. Previously the booking.com picture was of uninterrupted ocean views, but sometimes guests may get a level one unit with filtered ocean views through the beautiful Burleigh trees.
for
return, so that prices sometimes rise.”
but we also
53ResortNews | September 2022 PROFILE www.redten nance.com.au nick@redten nance.com.au 0450 179 677 Queensland’s Multi Award Winning Finance Broker • Professional & Friendly Service • Over 30 years experience • Accommodation funding specialists • New and experienced operator assistance Nick Smith Proud to be associated with Wendy and Anthony, wishing them all the best for the future A software that supports you… We appreciate the opportunity to partner with Cashelmara Beachfront Apartments Take your business to the next level. Contact us on 1800 671 179 today! All In One Trust SuitableAutomationAccountingforanyBusiness Beachfront Apartments for Resort News readers when you book direct with us and quote the code RESORTNEWS22 10% OFF* *subject to availability, valid for stays until July 31 2023 info@cashelmara com au +61 07 5535 0311 www.cashelmara.com.au @cashelmaraapartments @cashelmarabeachfrontapartments
“They’re fantastic they coming a long time. want them to coming, have to them market
have been
“Now our upgraded website allows guests to see the actual unit and views that they will get.
guests and we appreciate that
that we need to ensure our owners are receiving a fair
One of the more important things the Richardsons have already done for their business is to upgrade the property’s website, giving guests the option to select individual rooms that are all named. This is a clever way to manage guest expectations.
keep
“We only have a small number of units, and they are all individually owned and decorated by our owners,” Wendy said.
“We
tell
54 ResortNews | September 2022PREFERRED SUPPLIER DIRECTORY - GOLD COASTmanagement rights income verifica�on management rights trust account audi�ng prepara�on of bank review/re-finance figures erika thomas & associates MANAGEMENT ACCOUNTANTS phone 07 5575 9649 | mobile 0411 841 868 www.managementrightsauditor.com.auerikathomas@bigpond.com - SUNSHINE COASTYour Sunshine Coast Management Rights Specialists FOR OVER 20 YEARS Greg Kamp FCPA FTI 07 5443 7789 “Holbrook House” 48-50 Sugar Road Maroochydore info@kampba.com.au www.kampba.com.au Verification Reports - Due Diligences Tax Planning & Structures For Sale Figures - Auditing Tax & Accounting FIRST INTERVIEW FREE! “YOUR GUIDING LIGHT ON MANAGEMENT RIGHTS” - NORTH QUEENSLANDManagement Rights Specialist Financial Due Diligence Trust Account Audits Smiljan Jankovic 0423 595 SmiljanJ@agredshaw.com.au910 www.agredshaw.com.au Specialist Business Advisors to the Management and Letting Industry • Due Diligence Reports • Trust Account Audits • Structure Advice & Tax Compliance Level 3, 345 Ann Street, Brisbane QLD 4000 Paul www.crestaccountants.com.auinfo@crestaccountants.com.auManagementShannonRightsSpecialist0755380999VerificationReportsStructure&TaxationAdviceTrustAccountAuditingRisk&SuperannuationTax&Accounting Structuring Income Veri cation Audit Accounting/Taxation SMSF Estate Planning Email: jhanaghan@jonathangrant.com.au Phone 07 5534 4333 • Bookkeeping • Marketing • ManagementBusiness • Human Resources www.businessmechanic.com.au (02) 6583 8386 When your Business Needs a Tune or a Service Where Value & Service are No.1! Peter Brewer B. Bus. Acc.,FCA, CTA t: 07 5449 9992 e: peter@pbbconsult.com.au w: www.pbbconsult.com.au Chartered Accountants & Specialist Advisors to the Accommodation Sector on the Sunshine Coast Since 1993 ABSEILING ACCOUNTANTSSERVICES&AUDITORS MANAGEMENT RIGHTSBusinessSPECIALISTSDueDiligenceAuditingAdviceTaxation Accountants to the accommodationindustry. Call 07 5430 holmans.com.au7600 Specialist Advisers to the Accommodation & Hospitality Industry Accounting – Audits – Taxation Due Diligence info@hostrata.com.auwww.hostrata.com.auReports0756316900 THE ORIGINAL AND MOST TRUSTED BUSINESS TO BUSINESS GUIDE FOR THE ACCOMMODATION INDUSTRY THE PREFERRED SUPPLIER DIRECTORY Look for the sign of an Industry Specialist... Whatever, Wherever, www.accomnews.com.au/business-directoryWhenever!LookforthesignofanIndustrySpecialist
55ResortNews | Augustust 2021September 2022 PREFERRED SUPPLIER DIRECTORY FREECALL 1800 306 316 MB 0433 369 351 W www.ghom.com.au WINDOW CLEANING PRESSURE CLEANING ANCHOR TESTING AND INSTALLATION CONCRETE REPAIRS BUILDING MAINTENANCE AND PAINTING SIGNAGE REMOVAL AND INSTALLATION HIGH-RISE WINDOW SEALING CARPET & CLEANING/PROTECTIONFURNITURE • We clean carpets, tiles, mattresses and upholstery • Professional maintenance and emergency cleans • Water extraction and flood restoration Across the Sunshine Coast Call 0438 302 591 www.firstresort.com.au CLEANING CONTRACTORS LIFESTYLE CLEANING David: 0421 618 566SERVICINGRESORTjporter01@bigpond.com&COMMERCIALCLEANINGTHESUNSHINECOASTFOR20YEARS COMPUTER SOFTWARE Reservations and Trust Accounting Daily Reconciliation – Systematic www.pumasoftware.com.auDistribution Phone (07) 5446 2135 FREEviatrialdemoandperioddownload Year 1 $1,100 Year 2+ $599Holiday Year 1 $990 Year 2+ $440Resident Motels, caravan parks etc. from $220 to $330 p.a. Puma Light No trust accounting BODY CORPORATE MANAGERS DO1300IT’Swww.bcssm.com.auEASYCALL...845176YOUWANTTOCHANGEYOURBODYCORPORATEMANAGER? Look for the sign of an Industry Specialist BROCHURE DISPLAY Sunshine Coast Brochure www.SunshineCoastBrochureDisplay.com.auDisplay The regions’ original and leading brochure service and provider of information displays 0412 587 288 info@suncbd.com.au BUILDINGSERVICESMAINTENANCE MANUFACTURERS OF QUALITY BEDDING QUALITY WITHOUT COMPROMISE FACTORY DIRECT PRICES • Delivering the highest standard of product designed to give long life and superior comfort • Two sided mattresses used across the entire commercial bedding range • We use only the best quality re retardant fabrics and foams which also include pest resistant treatments, as well as conforming to Australian standards Sunshine Coast ph 07 5446 7541 Cairns ph 07 4032 5133 sales@themattresscompany.com.au www.themattresscompany.com.au sleepmakercommercial.com.au1800425903 BEDSPREADS & BEDCOVERING PRODUCTS AIR CONDITIONING Call 07 5522 1044 enquiries@climatecontrol.net.au www.climatecontrol.net.au Supplying the Gold Coast, Southern Brisbane and Northern New South Wales regions with quality air conditioning services since 1977. ASBESTOS REMOVAL ALL ASBESTOS REMOVED - QUEENSLAND WIDE BATHROOM RENOVATIONS Fully licensed & insured Leaking Shower? Seal 95% of leaking showers without tile Booksales@showersealed.com.auremovalwww.showersealed.com.auyourfreequotetoday1300519133 HIA SAVE YOUR CLIENTS TIME & MONEY Shower sealing & regrouting Shower waterproofing & tiling Shower renovations BEDS & BEDDING A NIGHTAGUESTHAPPYGOOD'SREST STARTS WITH 1300 654 ahbeardcommercial.com000 Look for the sign of an Industry Specialist Look for the sign of an Industry Specialist Look for the sign of an Industry Specialist... Whatever, Wherever, www.accomnews.com.au/business-directoryWhenever!
56 ResortNews | September 2022PREFERRED SUPPLIER DIRECTORY GYMNASIUMINSURANCEEQUIPMENT SUPPLYING ALL TYPES OF COMMERCIAL QUALITY FURNITURE, UMBRELLAS & AUSTRALIAFORLARGESUNBEDSINVENTORYFASTDELIVERYWIDEBESTPRICESinfo@kudosfurniture.com.au Commercial Specialist Direct Importers Sales, Service & Repairs ¾LARGEST RANGE¾FURNITURE ¾UMBRELLAS¾SUN LOUNGES Cnr Main Drive & Nicklin Way, Warana, Qld 4575 | Ph 07 5493 4277 Acres Centre, 1/37 Gibson Rd Noosaville 4566 | Ph 07 5449 9336 www.daydreamleisure.com.au sales@daydreamleisure.com.auWIDEAUSTRALIA GLASS INSTALLATION/REPAIRS ELECTRICAL CONTRACTORS SwitchboardAutomation Upgrades Emergency Lighting Safety Switches Ceiling Fans Smoke StreetRepairsAlarmstoAppliancesLights&Garden Lights Cabling & Phone/Power Points Servicing the Accommodation Industry General Electrical Tasks & Test and Tagging Domestic, Commercial & Industrial ELECTRICAL SERVICES (07) 5591 9191 ofSupply,ce@emerlite.com.auInstallation&RepairGold Coast and Northern Rivers NSW Street Lights & Garden License numbers: QLD 89805 NSW 385868c ENERGY CONSULTANTSMANAGEMENT&SERVICESFINANCE Industry specialistsfinancewithover80yearscombinedexperience. Mike Phipps | Director 0448 813 090 Paul Grant | Broker 0448 417 754 Cameron Wicking | Broker 0477 776 859 ACL (364 314) 4/31 Mary Street NOOSAVILLE QLD 4566 www.mikephippsfinance.com.au Professional & friendly service Over 30 years nance experience Accommodation funding specialists Nick Smith - 0450 179 677 www.redten nance.com.au nick@redten nance.com.au FINANC E Red Have us on your side. Our award-winning MR Finance Specialists with 20+ years’ industry experience will help you find a better deal today. 07 3899 2866 GreenFinanceGroup.com.au AUTHORISED UNDER LOAN MARKET PTY LTD AUSTRALIAN CREDIT LICENCE 390222. Management Rights Finance Specialists Brisbane: 07 3252 2219 • Gold Coast: 07 5576 7059 enquiries@pcsfinance.com.au www.pcsfinance.com.au FURNITURE Specialising in furniture for hotels, motels, serviced apartments, resorts and refurbishments 1300 876 055 dennis@hotelinteriors.com.auwww.hotelinteriors.com.au FURNITURE - OUTDOOR Suppliers of Quality Commercial Outdoor Furniture & Accessories • New Chairs • Tables • Sun Lounges Umbrellas Cushions & Accessories • Prompt Service Guaranteed REPAIRS - RESLINGS AND SUPPLY OF REPLACEMENT SLINGS TO P.V.C AND ALUMINIUM OUTDOOR FURNITURE 0418 765 coastalcasualoutdoors@gmail.comwww.casualfurniture.com.au257VISITOURSHOWROOMAT:Unit4,No.2CnrCaptainCookDriveandKendorSt,Arundel,QLD Look for the sign of an Industry Specialist... Whatever, Wherever, www.accomnews.com.au/business-directoryWhenever! Look for the sign of an Industry Specialist
57ResortNews | Augustust 2021September 2022 PREFERRED SUPPLIER DIRECTORY PAINTERS & DECORATORS • Painting • Grounds Maintenance & Landscaping • Signage & Branding • Electrical Services • Audio Visual • Data Communications • SustainabilityCall1800620 911 or 07 3718 programmed.com.au1600 MANAGEMENT RIGHTS AGENTS MANAGEMENT RIGHTS RESORTS Property Bridge Discreet Silent Listings Free Market Appraisals “Always professional,committedpassionate,andyoucantrusttheteamatPropertyBridge.” pinfo@propertybridge.com.auropertybridge.comau1800888518 ® Specialists in management rights O the plan sales qld & victoria Buying or selling best advice Rod Askew 0411 758 236 (QLD & VIC) Eric Brizuela 0413 060 683 (QLD) Nationwide: 07 3554 0040 Email: sales@rcabb.com.au www.rcabusinessbrokers.com.au SpecialisinginMotel&ResortSalesQldwide Andrew Morgan m 0417 608 041 p 07 4953 1611 | w qthb.com.au 1800 111 622 WWW STRATACORP.COM SPECIALIST AGENTS COMMITTED TO MAKING EVERY DEAL A SUCCESS Think Management Rights Wayne & Linda Stoll 0452 181 505 wayne@thinkmanagementrights.com.au Narelle Filmer 0459 229 744 narelle@thinkmanagementrights.com.au www.thinkmanagementrights.com.au - NORTH QUEENSLANDCALVINBAILEYMANAGEMENTRIGHTS.COM.AU YOUR PARTNERS IN SUCCESS Calvin Bailey LREA 0414 889 calvin@cbmr.com.au593 Alex Barker-Re LREA 0414 835 alex@cbmr.com.au128 - SUNSHINE COASTwww.managementrights.com e Management Rights Specialists Matt Campbell 0410 343 219 Barry Davies 0438 554 995 contact@managementrights.comSUNSHINECOAST 1300 755 112 | ebm.com.au We’ve got you covered EBM is your Management Rights insurance specialist. AFSLN 246986 ABN 31 009 179 640 As industry partners and members of ARAMA, we are proud to support the Management Rights sector. MGA was founded in 1975 and has since opened up 38 of ces around Australia, offering Insurance products for: Business Strata Landlord Protection With quick quote turnaround and hassle-free claims service Call us today on (07) 3720 6000 or email: quotes.brisbane@mga.com …When you need us most! LINEN &/OR LINEN GOODS 07 5437 8544 Australia’s Leading Hotel Bedding Suppliers info@mainlinen.com MAIL BOXES Quality Aust Products to meet All Building & Government Standards DELIVERIES QLD WIDE – INSTALLATION & SERVICE IN SE QLD P: (07) 5596 1440 E: info@sunni.com.au Look for the sign of an Industry Specialist
58 ResortNews | September 2022PREFERRED SUPPLIER DIRECTORY SPECIALIST EXPERIENCE IN MANAGEMENT RIGHTS Call Paul Jones on 5570 9306 Level 7, Wyndham Corporate Centre, 1 Corporate Court, Bundall Q 4217 Email: paul.jones@spglawyers.com.au Phone: (07) 3202 2266 Fax: (07) 3812 1128 Email: CERVETTOcervettocourtice@outlook.comCOURTICELAWYERS QUEENSLAND Management Rights Sales & Purchases Management Rights, Body Corporate and Property Law Specialists 10/1 Lanyana Way, Noosa Heads T 07 5474 5777 E siemonslawyers.com.auinfo@siemonslawyers.com.au SWIMMING SUPPLIES/REPAIRSPOOL Heat Pumps Proudly installed and serviced Noosa 5449 7855 | Maroochydore 5443 2111 Caloundra 5438 1588 153 Cooyar Street, Noosa Junction (07) 5447 3896 shop@noosapoolandspa.com • equipment • repairs • regular servicing • maintenance • chemical supplies • swimming aids & toys 25 Buying or Selling Renewing or Reviewing Negotiation & Dispute Resolution We are recognised experts in our eld, always outcome focused. gplaw.com.au GETRIGHTSMANAGEMENTADVICEITRIGHTTHEFIRSTTIME. established 1974 www.amalgamatedgroup.com.auinfo@amalgamatedgroup.com.au Painting, High Rise, Interior & Exterior and Building Rectification Brisbane – Gold Coast – Sunshine Coast W. Wilkopainting.com.au P. 1300 945 564 SHEET METAL Stainless Steel Handrails Restaurant Fit-Outs Exhaust Duct Work M 0413 432 COOLANGATTAadrian@sheetmetalimprovements.com.au294TOBEENLEIGHPh0755934183 SIGNS SOLICITORS Flood Legal offers all the experience & expertise of a big firm while delivering accessible, personal & affordable service that comes with dealing with a small firm. Call Sharon Flood, Director 0459 070 871 or 02 6674 sharon.flood@floodlegal.com.au5118www.floodlegal.com.auBuying&SellingNewAgreementsorVariationsGeneralAdviceAllatFixedFees Whatever, Wherever, www.accomnews.com.au/business-directoryWhenever! Look for the sign of an Industry Specialist... Look for the sign of an Industry Specialist Whatever, Wherever, www.accomnews.com.au/business-directoryWhenever!
59ResortNews | September 2022 VALUERS - REAL ESTATE mlr@australianvaluers.com.au 1800 664 094 australianvaluers.com.au MANAGEMENT RIGHTS VALUATION SPECIALISTS Australian Valuers have proven to be the No.1 choice for this highly specialised work. Our valuation team operate on a national level providing advice to the majority of Australia’s Banks Alex McCowan 0417 405 115 or Alison Sun 0416 181 www.accomvaluers.com.auadmin@accomvaluers.com.au285 Valuations for all purposes - National Coverage Major Lenders - Consultancy - COVID-19 Advice WHEN EXPERIENCE MATTERS The only AustraliavaluationManagementspecialistRightscompanyin(with25yearsexperience) TRAINING & DEVELOPMENT REAL 1800LICENSINGESTATECOURSES080349 Classes from Coolangatta to Cairns www.propertytraining.edu.au LIVE CLASSES at Logan Central or Anywhere via Zoom Professional Real Estate Training Since 2006 Resident Letting Agent Licence Course Real Estate Agent Full Licence Course Conducted LIVE by Friendly, Experienced Industry Trainers ENROL Today (07) 3878 8513 RTO Number 31303 email info@pret.com.au visit www.pret.com.au Bonus FREE CPD Workshops & Ongoing Support for Graduates Valued up to $2000 per annum (conditions apply) AUSTRALIA PRE T Savewww.accomnews.com.au/business-directorytime...DoitOnline!Whatever,Wherever,Whenever! If you’re not reading then you’re losing the advantage. THIS FORM CAN BE USED AS A TAX INVOICE FOR GST REPORTING PURPOSES • E&OE Please forward with payment to: Resort Publishing (ABN 77-126-017-454) PO Box 1080, Noosaville BC, Qld 4566 or subscriptions@multimediapublishing.com.auemail Ensure you have the ‘Resort Advantage’Newswith a team of highly skilled industry professionals covering all the critical topics that affect missensureSubscribeproperty.Accommodationyournowtoyoudon’tanotherissue of this leading monthly industry journal. CALL SUBSCRIPTIONSFOR 07 5440 5322 RegisRegistereAustraliaAustrPrint0002 ccommodation Indust .accomnew.accomnew com.au managementrights hotels motels rresorts holidayparks time share• hosted ue December 2021 $13.75 inc Pro le Toscana Village Resort Person of InterestLachlan Hoswell elinteriors.com.au info@hotelint com.au 87 05 Custom furnitur including packages finance SPECIALISTS IN ACCOMMODATIONFURNITURE FF&E AND JOINERY W MORE Dennis Contact Details: Type:Business:Name: Hotel Motel Apartment Other Units/Rooms Town:Address: State: P/Code: Phone: Fax: Email: Subscribe for 24 Issues and SAVE $33 I enclose Cheque in payment, or Mastercard Visa Please charge this purchase to my Credit Card A/C Card Name.No. Exp: Sign: Date: $297 (Inc GST) for 24 ISSUES (Save $33) $165 (Inc GST) for 12 ISSUES $99 (Inc GST) for 6 ISSUES Please send me a FREE complimentary copy TRIAL RESORT NEWS FOR FREE!
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